OAK BROOK, Ill., Nov. 30 /PRNewswire/ --
Banyan Strategic Realty Trust (Nasdaq: BSRTS) announced today that its Board
of Trustees has determined that completion of the pending litigation between
the Trust and its suspended president Leonard G. Levine will be the primary
focus of its liquidation strategy going forward.
The Trust, which adopted a Plan of Termination and Liquidation in January
of 2001 and subsequently sold 85% of its portfolio in a single transaction in
May of 2001, suspended Mr. Levine on August 14, 2000. Following the
suspension, the Trust sought a judicial determination, pursuant to the terms
of Mr. Levine's employment contract, that the Trust had and has just cause to
terminate the contract.
The lawsuit, filed in October of 2000 against Mr. Levine, is still
pending. Significant discovery has been accomplished by the Trust and
additional discovery is contemplated. The court has previously ordered that
all written fact discovery be completed by January 31, 2002, and that all non-
expert depositions be completed by April 30, 2002. A trial is anticipated in
the fourth quarter of 2002 or the first quarter of 2003. Including costs,
fees and potential damages, the suit and Levine's counterclaim involve more
than $2 million.
L.G. Schafran, Interim President, CEO and Chairman of the Board of
Trustees of the Trust, commenting on the Trust's announcement, stated: "In
view of the amounts at stake in the Levine litigation, and based upon the
Trust's assessment of the likelihood of success, we have determined to
postpone dissolution of the Trust until after the litigation has run its
course. Our remaining properties will continue to be marketed for sale and/or
lease, and will be disposed of as conditions warrant. However, we believe the
adoption of this strategy allows our shareholders to obtain the full benefit
of the anticipated result of this litigation and may have the added value of
allowing the real estate markets to recover as we await the outcome. We
intend to continue our policy of making liquidating distributions when, and as
often as, circumstances permit."
Since the adoption of the Plan of Termination and Liquidation, the Trust
has distributed a total of $4.95 per share to its shareholders. In light of
today's announcement, the Trust currently believes that it is unlikely that
the Trust's liquidation will be completed by the end of 2002, as previously
anticipated.
Banyan Strategic Realty Trust is an equity Real Estate Investment Trust
(REIT) which, 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 and now owns interests in three real estate
properties located in Atlanta, Georgia; Huntsville, Alabama; and Louisville,
Kentucky. 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 properties, 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, 2000, and in the "Management's Discussion and Analysis of
Financial Condition and Results of Operations" section which was included in
the Trust's Form 10-Q for the quarter ended September 30, 2001, which was
filed with the Securities and Exchange Commission on November 14, 2001.
Without limitation, the foregoing words such as "anticipates", "expects",
"intends", "plans", and similar expressions are intended to identify forward-
looking statements.
For more information please go to 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, Vice President, General
Counsel, +1-630-218-7255, or bhiggins@banyanreit.com , or
investor relations, L.G. Schafran, Chairman and Interim
CEO/President, +1-630-218-7250, or ir@banyanreit.com , both of
Banyan Strategic Realty Trust
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