OAK BROOK, Ill., May 15 /PRNewswire-FirstCall/ -- Banyan Strategic Realty
Trust (Nasdaq: BSRTS) announced today that it has entered into a series of
settlement agreements with Denholtz Management Corp. and other parties, to
resolve all contractual disputes among the various parties arising from the
sale of most of Banyan's portfolio to Denholtz in May of 2001.
Pursuant to the parties' purchase and sale contract, at the closing last
May, $1.5 million of sales proceeds were placed in escrow to provide assurance
to Denholtz that funds would be available during Banyan's liquidation process
to satisfy post-closing claims and adjustments. During the course of the year
since the closing, certain disputes have arisen involving certain closing and
post-closing adjustments.
The settlement agreements provide, in part, that Banyan will pay to, or
for the benefit of, Denholtz, $296,147 in full settlement of all claims of
Denholtz. The balance of the escrowed funds (approximately $1.2 million plus
interest) have been released to Banyan. Banyan and Denholtz have exchanged
mutual releases of any further liability under their purchase and sale
contract.
The mutual releases specifically exclude two promissory notes, each in the
original principal amount of $1.5 million, given by Denholtz to Banyan last
May as part of the $185.25 million purchase price for the portfolio. The
notes are due on June 30, 2002.
Banyan noted that prior to this settlement, the principal balances due on
the two notes were $1.5 million and $764,314.18, respectively, and that all
required interest payments to date have been timely made. Banyan and Denholtz
effected the settlement of their disputes by applying escrowed funds to reduce
the principal balance due on one of the promissory notes from $764,314.18 to
$483,017.18. Banyan also directly paid a $14,850 claim brought by a third
party against Banyan and Denholtz. The balance of the escrowed funds was then
released to Banyan.
L.G. Schafran, Interim President, Chairman and CEO of Banyan, commenting
upon the settlement agreement, said: "We are very pleased to reach these
agreements with Denholtz, settling our outstanding contractual disputes and
leaving slightly less than $2 million left to be paid on the notes we accepted
at the closing last May. This settlement allows us to realize a substantial
portion of the previously escrowed funds, and furthers our Plan of Termination
and Liquidation. We will continue our policy of making liquidating
distributions when, and as often as, conditions warrant."
Banyan Strategic Realty Trust is an equity Real Estate Investment Trust
(REIT) that, on January 5, 2001, adopted a Plan of Termination and
Liquidation. On May 17, 2001, the Trust sold approximately 85% of its
portfolio in a single transaction. Other properties were sold on April 1,
2002 and May 1, 2002. Banyan now owns a leasehold interest in one (1) real
estate property located in Atlanta, Georgia, representing approximately 9% of
its original portfolio. Since adopting the Plan of Termination and
Liquidation, Banyan has made liquidating distributions totaling $4.95 per
share. On May 1, 2002, Banyan announced that an additional distribution of
$0.30 per share will be made on May 31, 2002 to shareholders of record as of
May 16, 2002, thus increasing the total liquidating distributions to $5.25 per
share. As of this date, the Trust has 15,496,806 shares of beneficial
interest outstanding.
Except for the historical information contained herein, certain matters
discussed in this release are forward-looking statements, the achievement of
which involve risks and uncertainties such as the sale of the Trust's
remaining property, the amount of the remaining liquidating distributions, the
outcome of pending litigation and other risks and uncertainties that are
detailed from time to time in the Trust's reports filed with the Securities
and Exchange Commission, including the report on Form 10-K for the year ended
December 31, 2001 which was filed with the Securities and Exchange Commission
on March 21, 2002. Without limitation, the foregoing words such as
"anticipates", "expects", "intends", "plans", and similar expressions are
intended to identify forward-looking statements.
See Banyan's Website at http://www.banyanreit.com .
SOURCE Banyan Strategic Realty Trust
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Related links:
http://www.banyanreit.com
CONTACT:
Robert G. Higgins, First Vice President,
General Counsel of Banyan Strategic Realty Trust,
+1-630-218-7255, bhiggins@banyanreit.com , or Investor Relations,
L.G. Schafran, Chairman and Interim CEO-President,
+1-630-218-7250, ir@banyanreit.com
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