Regency Affiliates, Inc. Announced Claims Dismissed

    JENSEN BEACH, Fla., Nov. 9 /PRNewswire-FirstCall/ -- Regency Affiliates,
 Inc. (RAFI.OB) announced today that the Court in the action entitled Gatz et
 al. v. Ponsoldt, Sr., et al. pending in the New Castle County Court of
 Chancery, Delaware dismissed all but one claim alleged in the complaint.
 Management believes that the sole surviving claim, which relates to the
 December 2001 sale of assets from one Regency subsidiary to another Regency
 subsidiary, is without merit and, even if successful, would not be material to
 the Company or its financial condition.
     The complaint had challenged several transactions that occurred between
 2001 and 2003, including Regency's October 2002 recapitalization and the 2003
 payment of accrued compensation to the Company's former president.  In
 dismissing the claims, the Court determined that all of the claims (other than
 the claim related to the 2001 asset sale) were derivative in nature and that
 the claims could therefore not be maintained.  A copy of the Court's opinion
 will be available in due course on the Company's website
 (http://www.regencyaffiliates.com).
     Reacting to the Court's decision, Laurence S. Levy, Regency's President
 and Chief Executive officer, said: "We are delighted with the Court's
 decision.  Shareholders should be pleased that the Company will no longer need
 to allocate its resources to defending the dismissed claims."
 
     CAUTIONARY STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
 1995.  Statements in this press release may constitute "forward-looking
 statements" within the meaning of Section 27A of the Securities Act of 1933,
 as amended, and Section 21E of the Securities Exchange Act of 1934, as
 amended.  Any statements contained herein which are not statements of
 historical facts and that address activities, events or developments that
 Regency or its management expects, believes or anticipates will or may occur
 in the future shall be deemed to be forward-looking statements.  Forward-
 looking statements are inherently subject to risks and uncertainties, many of
 which cannot be predicted with accuracy and some of which might not be
 anticipated.  Future events, actual results of performance, financial or
 otherwise, could differ materially from those set forth in or contemplated by
 the forward-looking statements herein.  Readers are cautioned not to place
 undue reliance on these forward-looking statements, which speak only as of the
 date hereof.  Regency undertakes no obligation to release publicly any
 revisions to these forward-looking statements that may be made to reflect
 circumstances after the date hereof or to reflect the occurrence of
 unanticipated events.  The inclusion of any statement in this press release
 does not constitute an admission by Regency or any other person that the
 events or circumstances described in such statement are material.
 
 

SOURCE Regency Affiliates, Inc.

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.