We have News!!December 27, 1999 11:56
Restaurant Teams International, Inc. Settles Law Suit With Debenture Holders
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LONGVIEW, Texas--(BUSINESS WIRE)--Dec. 27, 1999--Restaurant Teams International, Inc. (OTC BB:RTIN) announced today that it has reached an agreement with Thomson Kernaghan, Canadian Advantage, Sovereign Partners, Dominion Capital, Stephen Hicks, and Mark Valentine (the "Debenture Parties"), to settle the litigation between the parties. The company is delighted to return to the business of operating a restaurant holding company and pursuing acquisitions.
The company announced that after performing due diligence and conducting extensive discovery, management has determined that there was, and is, no basis fact for any statements made by RTIN alleging wrongdoing by the Debenture Parties. There was no actionable conduct or any wrongdoing by the Debenture Parties vis a vis RTIN or its shareholders. In recognition and acknowledgement of this fact and RTIN's undisputed financial obligation to Sovereign Partners, Dominion Capital, and Canadian Advantage, the holders of RTIN debentures, RTIN has reached a settlement with the Debenture Parties. This settlement fully and finally resolves the debenture holders' claims asserting that RTIN defaulted on its obligations arising from RTIN debentures held by them and RTIN's claims of wrongdoing by the Debenture Parties. The settlement stays other litigation, including, the defamation action, pending the repayment of all the principle and interest due under the debentures and a portion of the penalties accrued thereunder. RTIN's Board of Directors have determined that the settlement is mutually beneficial both to RTIN and its shareholders, on the one hand, and to the Debenture Parties, on the other. RTIN acknowledges that the intention of the retraction is to undo whatever negative appearance, impression or harm that has been caused to the Debenture Parties by the allegations made as to them by RTIN.
Curtis A. Swanson, Chief Financial Officer of RTIN, commented that, "Restaurant Teams deeply regrets any harm caused to the Debenture Parties as a result of our allegations of wrongdoing." Mr. Swanson added, "We are all relieved to put this matter behind us so that we can move forward and implement our business plan."
Stephen Hicks, a spokesman for the Debenture Parties, stated, "We are pleased to put this matter behind us and look forward to working with RTIN in the future so that they can effectively move forward with their business plans."
Stanley Swanson, Chief Executive Officer of RTIN, stated, "We are all pleased with the agreed settlement. This now frees up all our energies and resources to focus on our current efforts to finalize the Fatburger acquisition as well as other opportunities that are currently under review."
This press release may contain forward-looking statements, which are generally preceded by words such as "believes," "expects," "anticipates," or "intends." Such statements are subject to risks and uncertainties, including but not limited to competitive conditions, real estate zoning and permitting complications, government regulations, and general conditions in the restaurant market.
CONTACT: Restaurant Teams International, Inc., Longview
Curtis A. Swanson, 903/295-6805
Facsimile 903/295-6790 |
