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COURT DENIES ATLANTIS MOTIONS TO STOP ROSPATCH ANNUAL MEETING

 COURT DENIES ATLANTIS MOTIONS TO STOP ROSPATCH ANNUAL MEETING
 GRAND RAPIDS, Mich., Dec. 5 /PRNewswire/ -- U.S. District Court Chief Judge Douglas Hillman of Michigan's Western District, today denied motions by the Atlantis Group (AMEX: AGH) to postpone the Dec. 10 annual meeting of Rospatch Corporation (NASDAQ: RPCH).
 Judge Hillman also denied Atlantis' motion that, in the alternative, Rospatch be enjoined from submitting for shareholder approval a proposal requiring that its directors may not be affiliated with a party in litigation with Rospatch and a proposal to oust two directors who are affiliated with Atlantis, which has been engaged in litigation against Rospatch since February 1988.
 The two directors affiliated with Atlantis are Earl W. Powell, Atlantis' chairman and CEO, and William L. Rogers, senior vice president of Trivest Group, Inc., a private investment firm related to Atlantis.
 Rospatch Chairman Neil L. Diver charged that since 1988 "Atlantis has been trying to gain control of Rospatch," one of the country's largest producers of ready-to-assemble (RTA) furniture and a leading supplier of stereo speaker cabinets to original equipment manufacturers of consumer electronics. The company's RTA furniture and stereo speaker cabinets are produced in Dowagiac, Mich., and Tiffin, Ohio.
 In denying Atlantis' request for a preliminary injunction, Judge Hillman stated that analysis of Atlantis' claims raised "substantial doubt" as to a likelihood of Atlantis' succeeding on the merits of those claims; that Atlantis' interpretation of the statues in support of its claims was "not persuasive"; and that "no irreparable harm" to Atlantis will occur from refusing to grant the injunctions.
 He said that there is nothing unlawful about Rospatch's proposal for shareholders to remove Powell and Rogers for conflict of interest.
 In fact, he said, "It is not in any way inappropriate for the shareholders to determine whether or not the continuation of these directors is in the best interests of the corporation."
 Judge Hillman questioned the 11th-hour nature of the motions. He said that Atlantis had given no reason for waiting to file these motions until 18 days prior to the annual meeting date and noted that Dec. 10 is now less than a week away.
 He said that "Granting an 11th-hour injunction under these circumstances would be an unnecessary interference in the process of corporate democracy. As a general proposition, shareholders should retain the power to vote and direct the affairs of the corporation, as long as those votes are exercised lawfully and fairly..."
 Noting that "The scheduled shareholders meeting may give Rospatch's true owners, the shareholders, an opportunity to address at least some of the problems faced by the company as a result of the Rospatch- Atlantis litigation," Judge Hillman concluded that "The public interest suggests that this court should not interfere with the scheduled opportunity for shareholders to vote on who will direct Rospatch and how it will be run."
 -0- 12/5/91
 /CONTACT: Joseph J. Miglore, president, 616-530-6300, or Neil L. Diver, chairman, 818-449-2323, both of Rospatch, or Gabriel Werba or Michael Carmichael of Gabriel Werba & Associates, 313-259-4947, for Rospatch/
 (AGH) (RPCH) CO: Rospatch Corporation; Atlantis Group ST: Michigan IN: HOU SU:


PS -- NY111 -- 9936 12/05/91 20:59 EST
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Publication:PR Newswire
Date:Dec 5, 1991
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