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NENDELS RECEIVES OFFER FOR $500,000 CASH INFUSION

 NENDELS RECEIVES OFFER FOR $500,000 CASH INFUSION
 WOODLAND HILLS, Calif., Oct. 6 /PRNewswire/ -- The following was


released today by John F. Rothman of The Northstar Group:
 "Nendels Corp., a Seattle-based hotel franchising company, has received an offer from John F. Rothman, a Nendels shareholder, to purchase $500,000 worth of newly issued stock of Nendels at a price-per-share to be negotiated. Rothman's offer includes a condition that he be appointed to the company's board of directors.
 "Rothman is the former president and chief executive officer of Hotel Investors Trust, a NYSE-listed public company with interests in hotels located throughout the United States. Earlier this year, Rothman filed a derivative shareholder's lawsuit against C. Richard Kearns, chairmand of the board of Nendels and other directors and officers of the company, alleging, among other things, breach of fiduciary duty and conflict of interest. Subsequently, a proxy contest ensued for control of the board of Nendels between a group of share holders and incumbent directors led by Kearns and a similar group led by Rothman. At issue in the proxy contest was a proposal supported by Rothman and opposed by Kearns, involving a transaction between Park Inns International Inc., a San Francisco-based hotel franchising company similar in size to Nendels, to combine the franchise systems of the two companies.
 "At a special shareholders meeting held on Sept. 21, 1992, and supervised by a Special Master appointed by the Federal District Court in which Rothman's lawsuit had been filed, the board of Nendels was expanded to 10 members, with the Kearns group obtaining control of six seats and the Rothman group obtaining control of four seats.
 "Immediately following the special shareholders meeting, Park Inns resubmitted its proposal to combine its franchise system with that of Nendels and invest additional capital in the company. On Oct. 6, 1992, Rothman made his offer to invest $500,000 in Nendels, independent of the Park Inns proposal. According to Rothman, he made his investment offer because, 'I believe Nendels has significant intrinsic value, but is in dire financial condition and needs additional working capital if it is to survive long enough to complete a transaction with Park Inns or consider any other opportunities which might allow shareholders to realize on that intrinsic value.' Nendels stock was delisted from trading on NASDAQ in May because it failed to meet the financial requirements necessary to maintain its listing.
 "Rothman's offer and the Park Inns proposal both expire at the end of October."
 -0- 10/6/92
 /CONTACT: John F. Rothman of The Northstar Group, 818-888-6500/ CO: Park Inns International; Nendels Corp. ST: California, Washington IN: LEI SU:


GT-TM -- SF011 -- 7189 10/06/92 15:44 EDT
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Publication:PR Newswire
Date:Oct 6, 1992
Words:447
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