NEW YORK The Friendly Hotels Group is to hold an Extraordinary General Meeting next week, where shareholders will vote on proposals recently submitted by the board in order to secure the future of the company. If the proposals are not approved, the company may face insolvency. Choice Hotels, which holds a 5% stake in Friendly Hotels, as well as two other significant shareholders, are understood to be in favor of the proposals.
Issues raised in the proposals include: the disposal of non-core hotel assets valued at approximately #36.4 million, a strengthened management team to which the goup is seeking to appoint a new CEO, a new strategic direction to maximize the opportunities of franchising, modifications to the Master Franchise Agreement with Choice and a reorganization of the capital structure. (1/12/01)
SOURCE:HVS International