REAL ESTATE

O&Y; Seeks Suspension of Debt Payments: Olympia & York has presented a plan to rescue its U.S. properties, asking bankers to suspend principal payments on debts for five years. If the bankers go along, O&Y; said that by 1995 its properties would generate $80 million in cash flow, after major expenses are paid. In the meantime, O&Y; said it has a cash management system that will make timely expense payments on each of its properties. The Toronto-based developer placed its Canadian and British holdings under bankruptcy court protection in May after talks collapsed with bankers over restructuring about $17.5 billion in debt. Canadian creditors are reviewing a separate restructuring plan for debts in that country.