Business & Finance
Business and Finance
Business and Finance
Fri, July 16, 2010
Thu, July 15, 2010 Prime Group Realty Trust Suspends Series B Preferred Dividends for the Second Quarter of 2010 and Announces Upcoming Process fo
CHICAGO--([ BUSINESS WIRE ])--Prime Group Realty Trust (PINK SHEETS: PMGEP) (the aCompanya)announced today that the Companya™s Board of Trustees determined not to declare a quarterly distribution on its SeriesB Preferred Shares for the second quarter of 2010, and that the Board is unable to determine when the Company might recommence distributions on the SeriesB Preferred Shares. The Board is also in the process of considering various financing and other capitalization and strategic alternatives for the Company.
The Boarda™s decision was based on the Companya™s current capital resources and liquidity needs and the overall negative state of the economy and capital markets. The Board intends to review the suspension of the SeriesB Preferred distributions periodically based on the Boarda™s ongoing review of the Companya™s financial results, capital resources and liquidity needs, and the condition of the economy and capital markets. The Company can give no assurances that distributions on the Companya™s SeriesB Preferred Shares will be resumed, or that any financing or other capitalization or strategic alternatives will be satisfactorily concluded.
As of July 31, 2010, six (6) consecutive quarterly dividends payable on the Series B Preferred Shares will be in arrears. The Articles Supplementary to the Companya™s Amended and Restated Designation of Trust (the aArticlesa) provide that if six (6) consecutive quarterly dividends payable on the Series B Preferred Shares are in arrears, the Bylaws of the Company must be amended in order that the number of trustees of the Company be increased by two (2). The Series B Preferred Shareholders are then entitled to elect the two (2) additional trustees to serve on the Board.
The Company intends to proceed with calling a special election of the Series B Shareholders for the purpose of electing the two (2) additional trustees to serve on the Board. The Company will distribute a press release on or around August 2, 2010 outlining the process by which a Series B Shareholder may nominate a person for election to the Board as one of the two (2) additional trustees. Included in the press release will be a description of the information that will need to be included with such nomination regarding both the nominee and the Series B Preferred Shareholder making the nomination.
Assuming the Company receives a sufficient number of valid nominations of persons for election to the Board by the Series B Preferred Shareholders, the Board will meet and set the date for the special meeting of the Series B Preferred Shareholders and the record date for such meeting. After the date and record date of the special meeting is set, the Company expects to send notice of the special meeting to each Series B Preferred Shareholder.
About Prime Group Realty Trust
Prime Group Realty Trust is a fully-integrated, self-administered, and self-managed real estate investment trust (REIT) which owns, manages, leases and redevelops office real estate, primarily in metropolitan Chicago. The Company currently owns 5 office properties containing an aggregate of approximately 1.6million net rentable square feet and a joint venture interest in one office property comprised of approximately 101,000 net rentable square feet. For more information about Prime Group Realty Trust, contact the companya™s Chicago headquarters at (312) 917-1300 or visit its website at [ www.pgrt.com ].
Certain statements contained in this press release may constitute aforward-looking statementsa within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect managementa™s current views with respect to future events and financial performance. The words, abelieves,a aexpects,a aanticipates,a aestimates,a and similar words or expressions are generally intended to identify forward-looking statements. Actual results may differ materially from those expected because of various risks and uncertainties, including, but not limited to, changes in general economic conditions as well as adverse changes in real estate markets.
