O&Y: It's The Reichmanns' Loss

Toronto's Reichmann family is almost sure to lose control of giant Olympia & York Developments. The question is when. Under a plan submitted by the Reichmanns in Canadian court on Oct. 28, they would cede 90% mf O&Y's Canadian arm to creditors over three to five years. Under a separate plan, the Reichmanns would offer creditors 49% of their U.S. holdings.

Even those concessions may not be enough, however. Canadian and U.S. debtholders, including Prudential Insurance, may hold out for better terms.