Reichmann plots return

NEW YORK - The ink is not dry on Olympia & York's bankruptcy - most creditors have yet to vote on the settlement - but Paul Reichmann, the former chief executive, is already planning his comeback, writes Larry Black.

The once-sprawling Canadian property development firm will be largely liquidated once it emerges from the protection of a Toronto bankruptcy court next month.

But a family friend, Andy Sarlos, a Toronto financier, confirmed yesterday that Mr Reichmann plans to raise a dollars 500m property fund to invest in troubled ventures and in business centres in less developed countries.

Reports which appeared on the eve of Monday's vote by O&Y's unsecured creditors, were 'very premature', Mr Sarlos said, and they indicated that the plan 'is a lot more definitive than it is'.

'Nothing will be done until after the vote,' he said.