FirstCity Liquidating Trust Files Lawsuit Against UIDC Management, Inc.
HOUSTON, March 13 /PRNewswire/ -- The FirstCity Liquidating Trust (OTC Bulletin Board: FCFCL and FCFCZ) currently owns a 67% interest in a partnership that owns First City Tower, a Class "A" office building in downtown Houston. UIDC Management, Inc. owns the remaining 33% of the partnership. FirstCity's partnership interest is valued on the Trust's books at $45 million and represents over 80% of the remaining value in the Trust. The Trust publicly stated its intent to market its share of the partnership in the first quarter of 2000.
The Trust received a letter dated February 18, 2000 from UIDC Management, in which UIDC alleged that in 1997 it "exercised" its contractual right of first refusal to purchase FirstCity's partnership interest. This alleged right of first refusal arose in connection with an unconsummated prior transaction, which was itself, the subject of previously settled litigation. The letter further states that UIDC " ... demands that FirstCity tender its partnership interest ...." Adjusted for refinancing costs, the alleged right of first refusal would have been on a value of approximately $23 million.
In response to this letter, and because FirstCity does not believe that UIDC's claim has any merit, the Liquidating Trust filed a lawsuit on March 9, 2000 seeking a declaratory judgment that " ... Defendants UIDC Management, Inc. and UIDC of Texas, Co. (collectively referred to as "UIDC" or the "UIDC Defendants") failed in May 1997 to exercise their right of first refusal properly under the Limited Partnership Agreement of FC Tower Property Partners, L.P. or, in the alternative, that UIDC Defendants have waived and/or are estopped from asserting such right ...."
FirstCity Liquidating Trust cannot predict the outcome of any such legal matters; however, the current litigation makes it unlikely that any near-term deal to sell the interest can be accomplished.
FirstCity Liquidating Trust is the entity formed to liquidate the assets of the former First City Bancorporation of Texas, Inc. Its Class B and Class C Certificates trade over the counter under the symbols FCFCL and FCFCZ, respectively.
SOURCE FirstCity Liquidating Trust
CO: FirstCity Liquidating Trust; UIDC Management, Inc.
ST: Texas |
