WTC developer says GMAC will pay rent through Oct.


NEW YORK, Sept 25 (Reuters) - Larry Silverstein, the World Trade Center leaseholder, on Thursday said GMAC Commercial Mortgage Corp. had agreed to put off for one month its request for a court order that would let it stop paying the developer the money he needs to pay rent to the site's owner.

GMAC, the complex's main lender, sued Silverstein because it feared the developer and the bi-state agency that owns the site had not set aside enough money to repay bondholders. Nearly $2 billion has been collected from insurers and bondholders are due $563 million plus interest.

"After consulting with Justice Cahn, the parties mutually agreed that GMAC would release business interruption proceeds and pay rent for the month of Oct. 2003, and that the parties would return to court on Oct. 22," Silverstein's spokesman said in a statement.

Spokesman Howard Rubenstein added Silverstein and the Port Authority of New York and New Jersey, which owns the 16-acre site where the twin towers stood until Sept. 11, 2001, were trying to reach an agreement to pay off the GMAC loan by the court-set deadline.

The case is being heard by New York Justice Herman Cahn.

In response to GMAC's lawsuit, the Port Authority on Sept. 10 said it was trying to remove GMAC from the rebuilding process.

The dispute with GMAC is just one of several legal obstacles facing rebuilders.

Silverstein and his insurers are fighting over the developer's claim that the two plane crashes represent two insured events, allowing claims of $7 billion. Swiss Re and other insurers of the center claim it was one event and they owe less than half of that staggering sum.

Spokesmen for GMAC and the Port Authority were not immediately available.

GMAC, based in Horsham, Pennsylvania, is the finance unit of automaker General Motors Corp.



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