O&Y facing court action

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OLYMPIA & York, the developer of the giant Canary Wharf project in London Docklands, has been warned by an international banking syndicate led by JP Morgan of New York and the Bank of Montreal that it plans to ask the courts for control of the cash flow generated by six office towers in New York and Los Angeles. O&Y, which is negotiating with 91 banks to restructure its dollars 11.5bn ( pounds 6bn) debts, has angered creditors by using rents to meet overheads and restructuring costs.