Criimi Mae Closes Recap Plan in Escrow

Criimi Mae Inc., Rockville, Md., has announced the closing in escrow of a $344 million recapitalization under which Barry S. Blattman, a managing partner of Brascan Real Estate Finance Fund, will be named chairman and chief executive officer.The recapitalization plan provides for an investment of approximately $44 million by BREF in common equity and subordinated debt and a $300 million secured financing by a unit of Bear, Stearns & Co Inc. The proceeds, together with available cash and liquid assets, will be used to retire Criimi Mae's remaining $373 million in recourse debt, which was incurred in connection with its emergence from Chapter 11 bankruptcy proceedings in April 2001, the company said. William B. Dockser, Criimi Mae's current chairman and CEO, will resign from those positions upon the termination of escrow, but will remain a director. H. William Willoughby, president and a director of the company, will resign both posts, and Donald C. Wood, an outside director, will resign. In addition to Mr. Blattman, Mark R. Jarrell and Joshua B. Gillon will be named to Criimi Mae's board, bringing the number of directors to nine. Criimi Mae can be found on the Web at http://www.criimimaeinc.com.