TECHNOLOGY - May 20, 1992

O&Y; Warns Investors: Olympia & York warned bondholders that it expects to miss bond payments on a Manhattan skyscraper next year when 40% of the leases are set to expire. The company offered investors a gloomy outlook for its 55 Water St. building, a 53-story financial district tower that counts Citibank, Chemical Bank and Depository Trust as major tenants. It told investors who hold $548 million in bonds backed by the building to form a committee and decide what to do about the impending financial crisis. Although bondholders are being paid, the investors could move to seize the building if Olympia & York falls behind on its payments. Olympia & York Water Street Finance bonds plunged 7 points after the news to an asking price of $30, a trader at Donaldson, Lufkin & Jenrette said.