Can O&Y Escape?

Ever since Olympia & York Developments Ltd. disclosed in March that it would have to restructure upwards of $12 billion in debt, O&Y Chief Executive and chief strategist Paul Reichmann has clung stubbornly to the notion that his empire was simply too big to fail. And for a while, conventional wisdom was on his side. If the Toronto developer failed, the financial community worried, already slumping worldwide real estate values would sag even further. From Tokyo to London, banks would face such severe losses as to shake the world's financial system.

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