OAK BROOK, Ill., June 18 /PRNewswire-FirstCall/ -- Banyan Strategic Realty
Trust (Nasdaq: BSRTS) announced today that it has executed an amendment of the
real estate sale contract pertaining to the Trust's single remaining property,
Northlake Tower Festival Mall, which had been scheduled to close on July 17,
2002.
The amendment extends the due diligence period from June 17, 2002 to June
19, 2002. The brief two-day extension of the due diligence period was granted
at the purchaser's request, in order to allow the purchaser to reschedule a
board of directors meeting, from June 14 to June 19.
Pursuant to the contract, as amended, the purchaser may terminate the
contract without any penalty prior to the end of the due diligence period
(June 19). On June 19, 2002, if the purchaser elects not to terminate, the
purchaser must increase its earnest money deposit, from $200,000 to $400,000,
and thereafter is entitled to termination without penalty, only if the Trust's
first mortgage lender fails to approve the purchaser's application for loan
assumption. A decision on that application is now anticipated in early to
mid-August.
The Trust also announced that it is negotiating with the purchaser a
proposed second amendment, that, if executed, would extend the period within
which the purchaser must obtain approval of the assumption of the Trust's
first mortgage loan, from June 10, 2002 to August 25, 2002, and would extend
the closing date from July 17, 2002 to September 17, 2002. The Trust noted
that the amendment was necessitated by a longer than anticipated approval
procedure for the assumption of the Trust's first mortgage loan, a key element
of the transaction.
Liquidating Distribution
The Trust announced that it will make a fourth interim liquidating
distribution, in the amount of $0.20 per share, on July 15, 2002, to
shareholders of record as of July 1, 2002. Giving effect to the fourth
distribution, the Trust will have made liquidating distributions totaling
$5.45 per share since adopting its Plan of Termination and Liquidation in
January of 2001.
L. G. Schafran, Chairman, CEO and Interim President of Banyan, commented
on the distribution, stating: "We are pleased to announce this additional
distribution to our shareholders, which arises from the settlement of post-
closing items in the Denholtz transaction (announced on May 15, 2002), and the
receipt of almost $2 million in notes receivable (announced on June 4, 2002).
With the delay in the anticipated receipt of the Northlake sale proceeds, and
in keeping with our stated policy of making distributions as conditions
warrant, we have determined to distribute this money sooner, and not to await
the Northlake closing before making this distribution."
Nasdaq Delisting
In other news, the Trust stated that the previously-announced hearing
before The Nasdaq Listing Qualifications Panel, to review a staff
determination that the Trust's shares of beneficial interest ought to be
immediately delisted, is proceeding on June 20, 2002 as scheduled. The Trust
reiterated that there can be no assurance that the Panel will grant the
Trust's request for continued listing on the Nasdaq National Market System.
The Trust also noted that if delisting does occur, the Trust will not receive
any advance notice of the Nasdaq determination.
If the Trust is not successful in obtaining continued listing on Nasdaq,
the Trust intends to list its shares of beneficial interest on the Over the
Counter Bulletin Board.
Levine Litigation
The Trust added that the ongoing litigation between the Trust and its
suspended president, Leonard G. Levine, continues. Written discovery is now
scheduled to close on September 30, 2002 and oral fact discovery is scheduled
to close on October 31, 2002. All expert witness disclosure and depositions
are to be concluded by December 13, 2002. The Trust currently anticipates a
trial date in the first or second quarter of 2003.
Banyan Strategic Realty Trust is an equity Real Estate Investment Trust
(REIT) that adopted a Plan of Termination and Liquidation on January 5, 2001.
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.
This property is subject to a contract of sale, currently scheduled to close
on July 17, 2002, but is expected to be extended to a September 17, 2002
closing date. Since adopting the Plan of Termination and Liquidation, Banyan
has made liquidating distributions totaling $5.25 per share. An additional
distribution of $0.20 per share is scheduled for July 15, 2002. 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. Please see also the "Management's Discussion and Analysis
of Financial Condition and Results of Operations" section which was included
in our Form 10-Q for the quarter ended March 31, 2002 which was filed with the
Securities and Exchange Commission on May 6, 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, +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, both of Banyan
Strategic Realty Trust
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