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Item 5. Other events
Restaurant Teams International, Inc. issued the following press release on
December 28, 1999.
Restaurant Teams International, Inc. and Debenture Holders reach settlement
Longview, Texas - Restaurant Teams International, Inc. ("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
in fact for the statements made by RTIN and it's officers, directors, and other
representatives 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 in principal with the Debenture Parties. If RTIN honors it's
obligations under the settlement and debenture, the settlement will fully and
finally resolve 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 filed
against RTIN, 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.
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."
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."
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. |
