NEW YORK, NEW YORK--(Marketwire - Aug. 20, 2012) - Somerset Capital Management ("Somerset") released the following statement this morning:
We are disappointed with the pace and apparent lack of progress to date on the company's ongoing strategic review. On February 28, 2012 Columbia Pacific, a holder of 29% of RLH's outstanding shares put out a press release indicating that they had been notified of interest from several "financial, strategic parties" that they had "interest in evaluating either assets of Red Lion or the entire company if a sale or liquidation were considered". Today, almost six months later (and five months after the company announced the retention of Merrill Lynch to explore strategic alternatives) we have seen nothing other than the sale of two secondary properties and LOI's on a small number of additional non-core properties. Somerset Capital believes that this process is not moving with great enough alacrity or success. We continue to be of the belief that whatever the highest value alternative Merrill Lynch's effort comes up with must be put to a vote of the shareholders, rather than having it potentially rejected for not having met some arbitrarily imposed limit imposed by the Board of Directors. If Red Lion's strategic review does not result in a value maximizing event for shareholders, we will work with other shareholders to do what is necessary to replace board members whom we no longer have confidence in.
We are also greatly troubled by management's unwillingness to open the Question and Answer portion of its recent conference calls to shareholders. The company belongs to those who own it and a management unwilling to take questions from its owners is completely at odds with good corporate governance. We believe that shareholders must be informed as to the progress of the strategic review and that we should have a chance to vote on the most attractive proposal that comes forward as part of the review. Shareholders must be given a voice in the process.
About Somerset
Somerset Capital Management is a New York-based money manager founded in 1999. It is a registered investment advisor and its flagship fund is Somerset Capital Partners, LP. Its principals have over 80 years combined investment experience.
Contact Information:
212-931-6588