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For Immediate Release
Contact: Doug Verner
Senior Vice President and General Counsel
Sunburst Hospitality Corporation
(301) 592-3895
SUNBURST HOSPITALITY SETS JANUARY 4, 2001
DATE FOR SPECIAL MEETING OF STOCKHOLDERS
Silver Spring, MD -- December 8, 2000 -- Sunburst Hospitality Corporation
(NYSE:SNB), a hotel ownership and management company, announced today that it
has set 10:30 am EST on January 4, 2001 as the date for a special meeting of the
stockholders being called to vote on a Recapitalization Agreement. Sunburst had
previously set November 22, 2000 as the record date for stockholders entitled to
vote at the special meeting. The meeting will be held at the Quality Suites
Hotel, 3 Research Court, Rockville, Maryland.
Proxy cards and a proxy statement will be mailed to all stockholders (as of the
November 22 record date) on December 9. The proxy statement contains important
information about the transaction, the conflicts of interest of certain
directors and officers, and a copy of the Recapitalization Agreement.
Stockholders are advised to read the proxy statement carefully before deciding
how to vote. The proxy statement can also be found at the U.S. Securities and
Exchange Commission's web site at www.sec.gov.
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If the Recapitalization Agreement is approved by the requisite number of
stockholders, the owners of publicly-held shares will receive $7.375 per share
in cash. Payment will be made following the completion of certain paper work
the stockholders will receive from the transfer agent, and will be made
approximately 30 days after the special meeting.
Sunburst also announced that it has reached an agreement in principle to settle
the stockholder lawsuits filed regarding the Recapitalization Agreement, subject
to approval of the Delaware Chancery Court for New Castle County. The prepared
settlement required Sunburst to include additional disclosure in the proxy
statements that will be mailed to stockholders about December 9.
This press release contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, which are intended to be covered by the safe
harbors created thereby.
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Investors are cautioned that all forward-looking statements involve risks and
uncertainties, including without limitation, future action or inaction by the
Board of Directors and stockholders of Sunburst and court approval with respect
to the matters referred to in this press release.
Although Sunburst believes that the assumptions contained herein are reasonable,
any of the assumptions could be inaccurate, and therefore, there can be no
assurance that the forward-looking statements included in this press release
will prove to be accurate. Sunburst does not assume any obligation to update any
forward-looking statements contained in this release.
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Contact:
Sunburst Hospitality Corporation
Douglas H. Verner, Senior Vice President, General Counsel
Secretary, (301) 592-3890
