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COURT ORDER ISSUED IN NENDELS SUIT

 COURT ORDER ISSUED IN NENDELS SUIT
 SAN FRANCISCO, May 14 /PRNewswire/ -- The U.S. District Court in


Portland, Ore. today issued an order prohibiting a trio of directors of Nendels Corp. (NASDAQ: NEND) from concluding a sale to Nendels of property owned by the directors. The court order was issued in connection with a shareholders' derivative lawsuit recently filed by John F. Rothman, a Nendels shareholder, against C. Richard Kearns, Phillip C. Gerstner, and Sherry S. Moore, three members of Nendels six-person board of directors. The order will remain in effect pending a hearing scheduled for June 19, 1992. The order also prohibits the three defendant directors from causing Nendels to engage in any transaction outside the ordinary course of the corporation's business without full board approval.
 The shareholders lawsuit alleges that the sale transaction was undertaken by the three directors without consulting the board and constituted self-dealing and a breach of fiduciary duty of the three directors to Nendels and its shareholders.
 Rothman, Aspinone Ventures Ltd., and John P. Matlick have previously announced a joint effort to seek control of Nendels, a Seattle-based hotel franchising company with approximately 70 licensed locations in operation. Matlick is the former president and CEO of Nendels. Aspinone is the controlling shareholder of Park Inns International Inc., a domestic and international hotel franchising and management company based in San Francisco. Park Inns has proposed that Nendels and Park Inns combine their franchise systems, and Rothman and Matlick have been working with Park Inns in an effort to bring about that combination.
 Jonathan R. Read, owner of Aspinone and president and CEO of Park Inns, stated that "The court action in Portland will preserve the operational integrity of Nendels while the derivative suit is prosecuted. It will also give us the time to present our proposal to the shareholders of Nendels and give them the opportunity to decide about the future direction of their company."
 According to Read, the combined operations of Nendels and Park Inns would be focused entirely on supporting franchisees with an integrated, aggressive, domestic and international marketing program and reservation system designed to maximize the revenues of all franchised hotels. "At the same time, we expect to provide the traveling pubic with a competitively priced, quality and service-oriented hotel product," Read added.
 A combined Nendels/Park Inns franchise system would include approximately 135 licensed U.S. and Canadian operations and, through the Park Inn International Worldwide Hotel Group, would give the domestic locations access to the market served by Park Inns' expanding base of international hotels through Park Inns' worldwide reservation system. Park Inns currently has over 50 hotels under franchise or management in 12 countries, in addition to approximately 65 franchised or managed hotels in the United States.
 -0- 5/14/92
 /CONTACT: Jonathan R. Read of Park Inns International, 415-362-0987/
 (NEND) CO: Park Inns International Inc., Nendels Corp. ST: California IN: LEI SU:


MM-MC -- SF012 -- 0429 05/14/92 16:32 EDT
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Publication:PR Newswire
Date:May 14, 1992
Words:493
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