CHICAGO, Aug. 14 /PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS) today announced that its Financial Advisory Committee of the
Board of Trustees has appointed independent trustee Larry Schafran as interim
president and chief executive officer. Mr. Schafran replaces
Leonard G. Levine.
During the first quarter 2000 Banyan's Board of Trustees formed the
Financial Advisory Committee comprised entirely of the independent trustees to
evaluate strategic alternatives and engaged CFC Advisory Services, an
affiliate of Cohen Financial, a Chicago-based real estate investment banking
firm, to serve as its advisor. In the process of exploring and evaluating
strategic alternatives designed to maximize shareholder value, the committee
and its advisor held preliminary discussion with Banyan's President,
Leonard G. Levine regarding a potential acquisition of the Trust's assets by a
group headed by Mr. Levine. These discussions were subsequently terminated
when the Financial Advisory Committee concluded that, in its view, Mr. Levine
engaged in conduct which constitutes a breach of his duty of loyalty and a
breach of his employment contract. On July 28, 2000, the committee announced
that as part of its continuing review, it authorized Cohen Financial to
initiate a marketing effort designed to solicit bids for the Trust's
properties in whole, bulk sales or individually. There is no assurance that
any transaction will materialize.
On August 14, 2000 Banyan exercised its rights under the employment
agreement with Mr. Levine, by suspending him and placing him on leave from his
position as president. Banyan also initiated an arbitration proceeding in
which it contends that certain actions taken by Mr. Levine constitute "just
cause" for terminating his employment agreement. Banyan is also evaluating
whether to file a lawsuit against Mr. Levine. Pending a final ruling by an
arbitrator or a court, Banyan will comply with the employment agreement
including the compensation provisions.
To replace Mr. Levine, the Board of Trustees has appointed Larry Schafran,
an independent trustee, to the position of interim chief executive officer.
Mr.Schafran is an experienced real estate investor and executive.
Mr. Schafran has had extensive experience with the sale and liquidation of
large sale real estate portfolios. Mr. Schafran was largely responsible for
the sale of Penn Central's real estate assets in metropolitan New York while
associated with The Palmieri Company, Inc. Mr. Schafran also serves on the
board of directors of three other public companies. The board has formed a
committee to discuss and negotiate a compensation package for Mr. Schafran.
Banyan Strategic Realty Trust is an equity Real Estate Investment Trust
(REIT) that owns primarily office and flex/industrial properties. These
properties are located in certain major metropolitan areas of the Midwest and
Southeastern United States, including Atlanta, Georgia and Chicago, Illinois
and smaller markets such as Huntsville, Alabama, Louisville, Kentucky,
Memphis, Tennessee, and Orlando, Florida. The Trust's current portfolio
consists of 27 properties totaling 3.5 million rentable square feet. As of
this date, the Trust has 14,202,414 shares of beneficial interest outstanding.
See Banyan's Website at http://www.banyanreit.com .
For further information regarding Banyan free of charge of via fax, dial
1-800-PRO-INFO and enter "BSRTS".
SOURCE Banyan Strategic Realty Trust
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Related links:
http://www.banyanreit.com
CONTACT:
Robert G. Higgins, Vice President and General
Counsel, 312-683-5539, email, bhiggins@banyanreit.com, or Karen
Dickelman, Director of Investor Relations, 312-683-3671, email,
ir@banyanreit.com
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