Morgans Hotel Group shareholder seeks to block recapitalization bid:

04/3/2013 | Bloomberg · TravelPulse

OTK Associates, the largest shareholder in lodging firm Morgans Hotel Group, has moved to oppose a recently announced agreement to transfer ownership of the Delano South Beach hotel in Florida to The Yucaipa Cos. in exchange for Morgans preferred stock and convertible notes controlled by Yucaipa. Jason Kalisman, a director at Morgans and a founding member of OTK, has filed suit challenging Morgans' bid to push the date of the company's annual shareholder meeting back to July as part of the transaction, which the group argues will allow Yucaipa to "amass a significant voting equity position where there was none as of the previously established record date."

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Bloomberg · TravelPulse

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