DALLAS--(EON: Enhanced Online News)--REIT Redux, L.P., a large, long-time shareholder of PMC Commercial Trust (NYSE: PCC), on October 9, 2013 filed a lawsuit in Dallas County Court at Law No. 5 titled REIT Redux, L.P. et al v PMC Commercial Trust naming as defendants PMC, Trust Managers, its executives, and CIM Urban REIT LLC. The suit alleges that PMC Commercial's Board of Trust managers approved and recommended a transaction that fails to maximize shareholder value and conspired to deprive shareholders of a fair vote on the sale transaction.
“The accounting for the surviving entity reflects that this is a ‘bargain purchase’ for CIM. We are deeply troubled by the process adopted by PCC’s Trust Managers who remain tone deaf to the wishes of its shareholders and we see no alternative other than litigating the matter.”
Shortly after the merger was announced, on July 19, 2013, REIT Redux, L.P. sent a letter to PMC’s Trust Managers expressing a variety of concerns with the transaction announced July 8th by PMC which was filed as an amendment to a Schedule 13D with the Securities and Exchange Commission on July 22, 2013. This may be found at www.sec.gov.
“We have previously expressed significant concern over the adequacy of the consideration when compared with the value of PCC. PCC’s own purported fairness opinion presents comparables selling for 95 percent to 150 percent of net asset value yet the consideration PCC shareholders are getting falls substantially short of even the bottom of that range,” said Robert Stetson, President and CEO of REIT Redux, L.P. “The accounting for the surviving entity reflects that this is a ‘bargain purchase’ for CIM. We are deeply troubled by the process adopted by PCC’s Trust Managers who remain tone deaf to the wishes of its shareholders and we see no alternative other than litigating the matter.”
A copy of the Original Petition may be obtained by contacting REIT Redux L.P.’s retained counsel in the matter STECKLER LLP’s Mazin Sbaiti, at Mazin@Stecklerlaw.com.
About REIT Redux L.P.
REIT Redux L.P. was formed in September 2008 and is based in Dallas, Texas. The firm is composed of investors with extensive experience analyzing, investing in and/or running Real Estate Investment Trusts. REIT Redux L.P. reserves the right to increase, decrease or dispose of its investment in PCC without prior notification.