BANKING

Olympia & York Court Case Not Settled: An attempt by Olympia & York Developments Ltd. to stave off a $240-million cash payment ended a first round in British High Court in London without resolution, giving the troubled property giant at least one more day to win a reprieve. Industry sources say O & Y, the world’s largest property group, could be forced to seek bankruptcy protection if it loses the appeal. Toronto-based O & Y signed a deal with Morgan Stanley in 1990 agreeing to buy the investment bank’s offices at the Canary Wharf development in London’s Docklands area. O & Y says the $240-million payment is not due until June 30; Morgan Stanley says it should have been made in December. Morgan Stanley went to court over the issue, winning a High Court ruling in March. If O & Y loses on appeal, the payment would be due immediately. And if the firm fails to come up with the cash, Morgan Stanley could move to liquidate the project.