Printer Friendly

LA QUINTA REALTY URGES LIMITED PARTNERS TO REJECT RONIN'S THIRD CONSENT SOLICITATION

 LA QUINTA REALTY URGES LIMITED PARTNERS
 TO REJECT RONIN'S THIRD CONSENT SOLICITATION
 SAN ANTONIO, Nov. 9 /PRNewswire/ -- La Quinta Realty Corp., the general partner of La Quinta Motor Inns Limited Partnership (NYSE: LQP) (the "Partnership"), announced today that it strongly urges all the limited partners of the partnership to reject a new consent solicitation commenced by Ronin Partners L.P. Ronin is seeking to dissolve the partnership and liquidate the Partnership's assets. This consent solicitation is Ronin's fourth attempt to control the future of the partnership since September 1991 and the third Ronin consent solicitation since February of this year.
 Steven T. Schultz, president of the La Quinta Realty Corp., commented, "A majority of the limited partners we spoke with during Ronin's last consent solicitation did not support Ronin and we are convinced that the limited partners recognize that Ronin's repetitive initiatives are made at the expense of the partnership. We greatly appreciate the support we have received from the limited partners and we will continue our efforts to improve the operating efficiency of the partnership's inns."
 In a letter to the limited partners, La Quinta Realty Corp. warned that Ronin's proposals are fraught with risks and, if Ronin's proposals were implemented, a sale of the partnership's assets could bring less value than the partnership has as a going concern. The general partner also observed that, if Ronin's proposals were adopted, the partnership's inns could lose the right to use the La Quinta (R) name and AEtna Insurance Company could foreclose on the assets of the partnership.
 The general partner also announced that it has admitted all unitholders of record as of Oct. 30, 1992 as substituted limited partners of the partnership. In addition to the economic rights of a limited partner, all unitholders of record as of Oct. 30, 1992 will have full voting rights.
 This action was taken to ensure that all unitholders can act to protect their investment in this and any further challenges to the future of the partnership.
 A copy of the general partner's letter to the limited partners, dated Nov. 6, 1992, follows.
 La Quinta Realty Corp., the general partner of the partnership, is a wholly-owned subsidiary of La Quinta Motor Inns, Inc., the entity which manages the partnership's Inns and restaurants. La Quinta Motor Inns Limited Partnership owns 31 La Quinta Inns and 20 restaurants in 15 states.
 (EDITOR'S NOTE: In September 1991, Ronin Exchange Corp. an affiliate of Ronin Partner's L.P., offered to acquire all of the outstanding units of the partnership in exchange for common stock of a newly-formed Ronin shell company. The offer was later withdrawn. In February 1992, Ronin Partners L.P. solicited consents from the limited partners to call a special meeting of the limited partners to consider and vote on a series of resolutions sponsored by Ronin. However, Ronin failed to deliver the requisite number of consents to the partnership before the date on which Ronin's initial consent expired and, for that reason, among others, no meeting was held. On June 29, 1992, Ronin commenced a consent solicitation to dissolve the partnership and liquidate the partnership's assets. On Aug. 25, 1992 Ronin terminated that solicitation and announced plans for a third consent solicitation to be completed "on or before October 15." Last week, Ronin announced that it had commenced its third consent solicitation, admitting that "the subject matter of this new consent solicitation is essentially the same as ... (the) solicitation (that Ronin terminated on August 25.)"
 Dear Limited Partner:
 Ronin Partners L.P. is yet again seeking your support to dissolve the Partnership and liquidate the Partnership's assets over a three- month period. This will be Ronin's fourth attempt to control the future of the Partnership and its third Consent Solicitation since February of this year. Moreover, Ronin admits that "The subject matter of this new Consent Solicitation is essentially the same as ... |its last~ solicitation."
 As previously reported, Ronin's actions continue to inflict significant costs on the Partnership. Two consent solicitations initiated by Ronin and seven lawsuits initiated by or related to Ronin have resulted in litigation and solicitation costs to the Partnership of $1,328,000 (or $.33 per Unit) in the first nine months of this year. It is distressing that the dramatic operating improvement of the Partnership has been offset by these costs.
 WE URGE YOU TO REFRAIN FROM SIGNING ANY BLUE FORMS OF CONSENT SENT TO YOU BY RONIN OR ITS AGENT. In the near future, you will receive a copy of the Partnership's Consent Revocation Statement in Opposition to the Solicitation of Consents by Ronin Partners L.P., which we urge you to review carefully.
 -- CAUTION --
 Ronin itself admits in its "new" Consent Statement that:
 -- if implemented, a sale of the Partnership's assets could (and, in the General Partner's opinion, would) bring less value than the Partnership has as a present going concern and, once a dissolution is approved by Unitholders, the dissolution cannot be undone;
 -- if implemented, a restructuring of the Partnership could leave Unitholders as securityholders in a new entity whose structure and management, like the value to be realized if assets are sold, cannot be determined at present;
 -- if Ronin's proposal is adopted, AEtna Insurance Company could foreclose on the assets of the Partnership and the Partnership may be forced into bankruptcy;
 -- if implemented, a dissolution of the Partnership could be a taxable event or result in other tax risks;
 -- potential bids for the assets of the Partnership may be conditioned upon theterminability of the Partnership's Management Agreement with La Quinta Motor Inns, Inc. and there is no assurance that this agreement could be terminated on terms satisfactory to any bidders; and
 -- if Ronin's proposal is adopted, the Partnership's inns could (and, in the General Partner's opinion, would) lose the right to use the La Quinta (R) name, and the loss of the La Quinta(R) name could (and, in the General Partner's opinion, would) (i) result in the payment of significant termination fees, (ii) materially adversely affect the revenues of the Partnership and (iii) lead to significant costs associated with reflagging the Partnership's inns.
 Accordingly, Ronin's "new" Consent Solicitation (like its last Consent Solicitation) could be harmful to the Partnership and your investment.
 The majority of Limited Partners that we spoke with during Ronin's last consent solicitation did not support Ronin and we are convinced that Ronin abruptly terminated its last consent solicitation because it was failing.
 We appreciate the strong support and encouragement that we have received from Limited Partners and we remain committed to focusing our efforts on continued operational improvements at the Partnership's inns.
 For the reasons set forth above, among others, we strongly oppose Ronin's new consent solicitation and we urge you not to sign or return any blue forms of consent sent to you by Ronin or its agents.
 On Nov. 6, 1992, La Quinta Realty Corp. admitted all Unitholders of record as of October 30, 1992 as substituted Limited Partners of the Partnership. In addition to the economic rights of a Limited Partner, all Unitholders of record as of October 30, 1992 will have full voting rights. We have taken this action to ensure that all Unitholders can act to protect their investment in this and any future challenges to the future of the Partnership.
 La Quinta Realty Corp., the General Partner of the Partnership, is a wholly-owned subsidiary of La Quinta Motor Inns, Inc. the entity which manages the Partnership's inns and restaurants pursuant to a management agreement. Neither the General Partner nor La Quinta Motor Inns, Inc. owns any Units representing limited partnership interests in the Partnership.
 If you have any questions, please call D. F. King & Co., Inc, which is assisting us in this matter, toll-free at 1-800-522-5001.
 Very Truly yours,
 LA QUINTA REALTY CORP.
 General Partner
 -0- 11/09/92
 /CONTACT: La Quinta Motor Inns Limited Partnership investor relations, 210-366-6030/
 (LQP) CO: La Quinta Motor Inns Limited Partnership ST: Texas IN: LEI SU: TNM


AH -- NY115 -- 8978 11/09/92 18:31 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 9, 1992
Words:1337
Previous Article:FIRST CLASS OF SOUTH CENTRAL LOS ANGELES YOUTHS TO GRADUATE FROM HYUNDAI ACADEMY OF AUTOMOTIVE TECHNOLOGY, THURSDAY, NOV. 12
Next Article:SPECTRUM SIGNAL PROCESSING ANNOUNCES RECORD PROFIT FOR THE THIRD QUARTER
Topics:


Related Articles
RONIN'S CONSENT SOLICITATION DEFECTIVE
LA QUINTA MOTOR INNS LIMITED PARTNERSHIP
LA QUINTA MOTOR INNS LIMITED PARTNERSHIP ANNOUNCES SUBSTANTIALLY IMPROVED OPERATING RESULTS
LETTER TO UNITHOLDERS OF LA QUINTA MOTOR INNS
LA QUINTA MOTOR INNS PARTNERSHIP URGES UNITHOLDERS TO CONSIDER THE BENEFITS OF THE LA QUINTA RELATIONSHIP AND IMPROVED OPERATING RESULTS
LA QUINTA MOTOR L.P. SENDS LETTER TO UNITHOLDERS IN RESPONSE TO RONIN PARTNERS' CONSENT SOLICITATION
LA QUINTA MOTOR INNS LIMITED PARTNERSHIP COMMENTS ON RONIN PARTNERS TERMINATION OF ITS CONSENT SOLICITATION
LA QUINTA REALTY ANNOUNCES THAT INDEPENDENT ELECTION INSPECTOR APPOINTED TO VERIFY CONSENT TABULATION
INDEPENDENT INSPECTOR REPORTS THAT RONIN CONSENT SOLICITATION FAILED
LA QUINTA MOTOR INNS LIMITED PARTNERSHIP MAKES ANNOUNCEMENT

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters