November 20, 1992

Warned by Canada's leading banks that its three-week-old plan to restructure debts would be rejected, Olympia & York is preparing sweeping new proposals that would allow its creditors to seize some of Canada's most prestigious office buildings, lawyers for the insolvent Canadian real estate giant said today. The forced change of direction represents another striking setback for the world's largest real estate developer, which has been a participant in property markets for the last two decades, building up assets once calculated at more than $20 billion.

When Clark Gable returned to movie-making after World War II, M-G-M crowed, "Gable's back and Garson's got him." Yesterday, the news was that Jerry's back and Newsweek's got him. Yes, Jerry Della Femina, whose colorful campaigns have delighted and dismayed consumers and competitors since the 1960's, is returning to advertising, five months after leaving his previous agency, Della Femina, McNamee Inc., in a bitter dispute with its French owners.

Japanese depositors, concerned over the financial health of the nation's banks and insurance companies, are fleeing these institutions for the safety of the Government-controlled postal savings and insurance systems. Responding with an unusual display of anger, Japan's financial institutions held a public rally today to attack what they described as unfair competition. The rally is a sign that the long-accepted direct role of the Government in the economy will come under attack when the private sector finds its own interests threatened. The Government's participation has brought complaints from the West that Japan operates under a different brand of capitalism.

President's Mother Dies Dorothy Walker Bush died of a stroke at her home in Greenwich, Conn., only hours after a visit by the President. She was 91 years old. Page A22. Peruvian Rebels Are Divided The police in Peru say that the Shining Path guerrilla movement is riven by internal turmoil but that its final defeat is far from certain. Page A3. Hard Times at United Way United Way officials fear that 1992 will mark the sharpest decline in donations in four decades. Page A14.

Companies Olympia & York lawyers are preparing new proposals to give its creditors the freedom to seize some of Canada's prestigious office buildings. The bankrupt developer had been warned by banks that its previous plans would be rejected by creditors. [ Page D1. ] A.T.& T. plans to sell 15 percent of its equipment-leasing subsidiary to the public by mid-1993. A.T.& T. Capital has more than $7 billion in assets and $1 billion in revenue. [ D1. ]