Criimi Mae to defer preferred stock dividend

New York, May 16 - Criimi Mae Inc. said it will defer payment of second quarter dividends on its series B, series F and series G preferred stock.

"As we stated last December, we will consider deferring the payment of preferred stock dividends during future quarters while the company explores the refinancing of its secured debt," said Criime Mae chairman William B. Dockser in a news release.

Since emerging from Chapter 11 in April 2001, the Rockville, Md. commercial mortgage company has paid dividends on the preferreds in the form of shares of common stock. Its ability to pay cash is limited by the terms of its secured debt.

Dockser said in the release that deferring the preferred dividend payments was in the best interests of the company's preferred and common stockholders because, "we believe the negative effects of issuing dividends in the form of common stock impede the Company's efforts to refinance its secured borrowings."

Dividends on the preferreds are cumulative.

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