BINGHAM FARMS, Mich., July 9 /PRNewswire-FirstCall/ -- Malan Realty
Investors, Inc. (NYSE: MAL), a self-administered real estate investment trust
(REIT), announced today that the Michigan Court of Appeals upheld a previous
decision by the Circuit Court in Oakland County, Michigan granting summary
disposition in favor of Malan's former president and chief executive officer
Anthony S. Gramer.
The decision, which was dated July 1, 2003, affirms the Circuit Court's
decision, which provided that Gramer was entitled to both change-in-control
payments and termination payments through December 2003 under his employment
agreement with the company. Gramer was dismissed from Malan in July 2000,
having previously received a $1 million change-in-control payment as a result
of a proxy contest that replaced the company's board of directors with a new
slate of directors in May 2000.
Although Malan still believes that the court's decision is in error and is
evaluating its options available for further appeal, it nonetheless recognizes
the potential liability resulting from the ruling. Accordingly, the company
will record a liability of approximately $1.4 million at June 30, 2003, which
is equal to the amount of the award to Gramer plus accrued interest through
the expected date of resolution.
"We are obviously disappointed by the court's decision," said Malan
President and Chief Executive Officer Jeffrey Lewis. "We will review all
options available to us before proceeding."
In August 2002, Malan's shareholders approved a plan of complete
liquidation. As a result of the court's decision, the company announced it
was immediately lowering its estimated range of liquidating distributions by
25 cents per share to $4.50 to $6.25 per share.
Malan Realty Investors, Inc. owns and manages properties that are leased
primarily to national and regional retail companies. The company owns a
portfolio of 43 properties located in eight states that contains an aggregate
of approximately 4.0 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 its plan of liquidation and expenses incurred
during the liquidation period, changing market conditions affecting the sales
price of the company's properties, the disproportionate effect of changes in
proceeds from property sales on liquidating distributions due to the company's
capital structure, the cost of the ultimate disposition of any appeal of the
Gramer litigation, bankruptcies and other financial difficulties of tenants,
the cost of addressing environmental concerns, unforeseen contingent
liabilities, and other risks associated with the commercial real estate
business, as detailed in the company's filings from time to time with the
Securities and Exchange Commission. Many of these factors are beyond the
control of the company. Malan does not undertake to update these forward-
looking statements.
News releases for Malan Realty Investors are available on the company's
Web site at http://www.malanreit.com or through Company News On-Call by fax at (800)
758-5804, ext. 114165, or http://www.prnewswire.com .
SOURCE Malan Realty Investors, Inc.
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Related links:
http://www.malanreit.com
CONTACT:
Elliott J. Broderick, Chief Financial Officer
of Malan Realty Investors, Inc., +1-248-644-7110, or Fred Nachman
of Marjan Communications Inc., +1-312-867-1771
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