CRIIMI MAE Scheduled to Emerge From Bankruptcy on Tuesday, April 17th

Apr 13, 2001, 01:00 ET from CRIIMI MAE Inc.

    ROCKVILLE, Md., April 13 /PRNewswire/ -- The date for CRIIMI MAE Inc.
 (NYSE:   CMM) to emerge from bankruptcy has been set for next Tuesday,
 April 17th.
     In a Motion filed today in the United States Bankruptcy Court for the
 District of Maryland, Greenbelt Division, all of the key parties to CRIIMI
 MAE's Chapter 11 proceeding said that they have finalized and signed certain
 essential documents needed to fund CRIIMI MAE's recapitalization.  Subject to
 closing conditions, the Motion also said that the parties "plan to sign the
 miscellaneous closing documents, disburse the funds and consummate the
 Effective Date of the Plan on or before Tuesday, April 17th."
     The Motion indicated that the signed funding documents include a
 Repurchase Agreement, an Intercreditor Agreement and two Senior Secured Note
 Indentures.
     "The execution of these major documents should put us in position to fund
 the reorganization and emerge from bankruptcy on Tuesday.  All sides of the
 table worked very hard to get to this point, and their efforts are greatly
 appreciated," said David B. Iannarone, Executive Vice President.
     The Motion filed today further stated that due to the Easter weekend
 holiday and disruption of normal banking schedules, the parties were unable to
 finalize the miscellaneous closing documents, and consummate the transaction
 prior to Tuesday.
     The parties to today's Motion were the Company, the Official Committee of
 Unsecured Creditors of CRIIMI MAE Inc., Merrill Lynch Mortgage Capital Inc.
 and German American Capital Corporation.
     The Court cleared the way for the closing by approving an extension of the
 date by which CRIIMI MAE's plan of reorganization must become effective to
 Tuesday, April 17, 2001.
     CRIIMI MAE will issue its fourth quarter and year 2000 results and file
 its Annual Report on Form 10-K for the year ended December 31, 2000 no later
 than Monday, April 16, 2001.
     More information on CRIIMI MAE is available on its web site
 -- www.criimimaeinc.com -- or for investors, call Susan Railey, 301-468-3120,
 or for news media, call Jim Pastore, 202-546-6451.
 
     Note:  Except for historical information, forward-looking statements
 contained in this release involve a variety of risks and uncertainties.  These
 risks and uncertainties include the continued uncertainty of the capital
 markets; the ability of the Company to obtain recapitalization financing as
 contemplated by the Company's plan of reorganization and necessary to fund;
 the ability of relevant parties to finalize and execute constituent and
 operative documents called for by the Company's plan of reorganization,
 including with respect to the recapitalization financing; the trends in the
 CMBS market; competitive pressures; the effect of future losses on the
 Company's need for liquidity; the effectiveness and consummation of the
 Company's plan of reorganization; the effects of the bankruptcy proceeding on
 the Company's ongoing business; the actions of CRIIMI MAE's creditors and
 equity security holders; the possibility that the Company's trader election
 may be challenged on the grounds that the Company is not in fact a trader in
 securities or that it is only a trader with respect to certain securities and
 that the Company will, therefore, not be able to mark-to-market its
 securities, or that it will be limited in its ability to recognize certain
 losses, resulting in an increase in shareholder distribution requirements with
 the possibility that the Company may not be able to make such distributions or
 maintain REIT status; the likelihood that mark-to-market losses will increase
 and decrease due to changes in the fair market value of the Company's trading
 assets; the possibility that the Series G Dividend Preferred Stock will not
 eliminate any or all of the Company's 1999 tax liability or satisfy its REIT
 distribution requirements; the ability of the Company to obtain capital once
 its plan of reorganization has become effective which could be affected by,
 among other matters, the cost and availability of such capital, the general
 economic conditions, restrictive covenants under the credit arrangements
 contemplated by the Company's plan of reorganization, results of operations,
 leverage, financial conditions and business prospects; and the outcome of
 litigation to which the Company is a party, as well as the risks and
 uncertainties that are set forth in the Company's disclosure statement, and
 from time to time in the Company's SEC reports, including its Annual Report on
 Form 10-K for the year ended December 31, 1999 and its Quarterly Report on
 Form 10-Q for the quarter ended September 30, 2000.
 
 

SOURCE CRIIMI MAE Inc.
    ROCKVILLE, Md., April 13 /PRNewswire/ -- The date for CRIIMI MAE Inc.
 (NYSE:   CMM) to emerge from bankruptcy has been set for next Tuesday,
 April 17th.
     In a Motion filed today in the United States Bankruptcy Court for the
 District of Maryland, Greenbelt Division, all of the key parties to CRIIMI
 MAE's Chapter 11 proceeding said that they have finalized and signed certain
 essential documents needed to fund CRIIMI MAE's recapitalization.  Subject to
 closing conditions, the Motion also said that the parties "plan to sign the
 miscellaneous closing documents, disburse the funds and consummate the
 Effective Date of the Plan on or before Tuesday, April 17th."
     The Motion indicated that the signed funding documents include a
 Repurchase Agreement, an Intercreditor Agreement and two Senior Secured Note
 Indentures.
     "The execution of these major documents should put us in position to fund
 the reorganization and emerge from bankruptcy on Tuesday.  All sides of the
 table worked very hard to get to this point, and their efforts are greatly
 appreciated," said David B. Iannarone, Executive Vice President.
     The Motion filed today further stated that due to the Easter weekend
 holiday and disruption of normal banking schedules, the parties were unable to
 finalize the miscellaneous closing documents, and consummate the transaction
 prior to Tuesday.
     The parties to today's Motion were the Company, the Official Committee of
 Unsecured Creditors of CRIIMI MAE Inc., Merrill Lynch Mortgage Capital Inc.
 and German American Capital Corporation.
     The Court cleared the way for the closing by approving an extension of the
 date by which CRIIMI MAE's plan of reorganization must become effective to
 Tuesday, April 17, 2001.
     CRIIMI MAE will issue its fourth quarter and year 2000 results and file
 its Annual Report on Form 10-K for the year ended December 31, 2000 no later
 than Monday, April 16, 2001.
     More information on CRIIMI MAE is available on its web site
 -- www.criimimaeinc.com -- or for investors, call Susan Railey, 301-468-3120,
 or for news media, call Jim Pastore, 202-546-6451.
 
     Note:  Except for historical information, forward-looking statements
 contained in this release involve a variety of risks and uncertainties.  These
 risks and uncertainties include the continued uncertainty of the capital
 markets; the ability of the Company to obtain recapitalization financing as
 contemplated by the Company's plan of reorganization and necessary to fund;
 the ability of relevant parties to finalize and execute constituent and
 operative documents called for by the Company's plan of reorganization,
 including with respect to the recapitalization financing; the trends in the
 CMBS market; competitive pressures; the effect of future losses on the
 Company's need for liquidity; the effectiveness and consummation of the
 Company's plan of reorganization; the effects of the bankruptcy proceeding on
 the Company's ongoing business; the actions of CRIIMI MAE's creditors and
 equity security holders; the possibility that the Company's trader election
 may be challenged on the grounds that the Company is not in fact a trader in
 securities or that it is only a trader with respect to certain securities and
 that the Company will, therefore, not be able to mark-to-market its
 securities, or that it will be limited in its ability to recognize certain
 losses, resulting in an increase in shareholder distribution requirements with
 the possibility that the Company may not be able to make such distributions or
 maintain REIT status; the likelihood that mark-to-market losses will increase
 and decrease due to changes in the fair market value of the Company's trading
 assets; the possibility that the Series G Dividend Preferred Stock will not
 eliminate any or all of the Company's 1999 tax liability or satisfy its REIT
 distribution requirements; the ability of the Company to obtain capital once
 its plan of reorganization has become effective which could be affected by,
 among other matters, the cost and availability of such capital, the general
 economic conditions, restrictive covenants under the credit arrangements
 contemplated by the Company's plan of reorganization, results of operations,
 leverage, financial conditions and business prospects; and the outcome of
 litigation to which the Company is a party, as well as the risks and
 uncertainties that are set forth in the Company's disclosure statement, and
 from time to time in the Company's SEC reports, including its Annual Report on
 Form 10-K for the year ended December 31, 1999 and its Quarterly Report on
 Form 10-Q for the quarter ended September 30, 2000.
 
 SOURCE  CRIIMI MAE Inc.