BINGHAM FARMS, Mich., Jan. 15 /PRNewswire-FirstCall/ -- Malan Realty
Investors, Inc. (NYSE: MAL), a self-administered real estate investment trust
(REIT), announced today that the Michigan Supreme Court had denied its request
to reconsider a previous decision upheld by the Michigan Court of Appeals in a
lawsuit filed by Malan's former president and chief executive officer.
The Court of Appeals had previously upheld a decision by the Circuit Court
in Oakland County, Michigan that granted judgment in favor of former Malan
President and CEO Anthony S. Gramer in a lawsuit involving an alleged breach
of his employment contract by the company. The decision by the Supreme Court
denying Malan's appeal effectively upholds the lower courts' rulings and
requires the company to pay Gramer a lump-sum payment of approximately
$1.04 million as well as interest and certain other court costs. Malan
previously recorded a liability on its books of $1.4 million in the event of
an unfavorable decision by the court. The company estimates the actual
payment to Gramer will be made in the first quarter of 2004 and will be
approximately equal to the reserve on the books.
Malan Realty Investors, Inc. owns and manages properties that are leased
primarily to national and regional retail companies. In August 2002, the
company's shareholders approved a plan of complete liquidation. The company
owns a portfolio of 27 properties located in eight states that contains an
aggregate of approximately 2.2 million square feet of gross leasable area.
Safe Harbor Statement: This news release may contain forward-looking
statements. Although the company believes that the statements and projections
are based on reasonable assumptions, actual results may differ from those
projected. Key factors that could cause actual results to differ materially
include uncertainties regarding the length of time required to sell the
company's properties and execute the plan of liquidation, expenses incurred
during the liquidation period, the company's ability to retire or refinance
its indebtedness as it comes due, its success in selling assets, the changing
market conditions affecting the sale prices of its properties, the
disproportionate effect of changes in proceeds from property sales on
liquidating distributions due to the company's capital structure, economic
downturns, leasing activities, bankruptcies and other financial difficulties
of tenants, the cost of addressing environmental concerns, unforeseen
contingent liabilities, other risks associated with the commercial real-estate
business, and other concerns as detailed in the company's filings from time to
time with the Securities and Exchange Commission.
News releases for Malan Realty Investors are available on the company's
Web site at http://www.malanreit.com or in the Company News section on the PR
Newswire Web site at http://www.prnewswire.com .
SOURCE Malan Realty Investors, Inc.
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Related links:
http://www.malanreit.com
CONTACT:
John Roberson, Media Relations,
+1-248-644-7110, or Fred Nachman of Marjan Communications Inc.,
+1-312-867-1771, both for Malan Realty Investors, Inc.
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