TULSA, Okla., July 25, 2016 /PRNewswire/ -- Senior Star Management Company (Senior Star) today issued a letter to all shareholders of Five Star Quality Care Inc. (FVE or Five Star) regarding Five Star's June 29, 2016 transaction with Senior Housing Properties Trust and its concerns with corporate governance. William F. Thomas and Robert D. Thomas, co-founders of Senior Star Management Company, and certain donor-advised charitable funds, collectively may be deemed to beneficially own approximately 3.4 million shares of Five Star, or approximately 6.8 percent of the shares outstanding.
"While the recent efforts of Five Star's management to monetize the company's balance sheet are encouraging, we are concerned by the additional leverage and cash flow burden placed on the company," stated William Thomas. "We continue to believe that Five Star is significantly undervalued with the potential to be a best-in-class operator. However, until leadership can consistently demonstrate independence from other affiliated entities, achieving that potential will be a long and challenging road."