The battle for the control of TNP Strategic Retail Trust – renamed Strategic Realty Trust after the ouster of founder Tony Thompson by SRT’s independent directors – is heating up.
On November 4, 2013, a press release was issued by a group called “SRT Shareholders Coalition,” which includes among its members Tony Thompson, his wife, Sharon Thompson, and Thompson National Properties. The press release, which was part of a proxy solicitation, was titled “SRT Special Committee and Batinovich Tells Shareholders to Pound Sand – Batinovich and Special Committee Change Election Rules AGAIN to Protect Their Positions at SRT,” and is available here: Thompson Proxy Letter – TNP SRT.
The letter accuses Andrew Batinovich, TNP Strategic Retail Trust’s current CEO, and three SRT directors of mismanaging TNP SRT and misleading its shareholders, among other charges.
That same day, TNP SRT filed a proxy statement that amended certain provisions in the company’s bylaws governing its directors and shareholder meetings, available here: SRT Bylaw Amendments.
A day earlier, TNP SRT issued a press release titled “SRT Adopts Changes to Protect Shareholders Under Maryland Law” (click on the link to open document). The press release states that Thompson National Properties “is apparently insolvent” and accuses Tony Thompson of making certain allegedly improper fee payments to himself while at TNP SRT’s helm.
While the current and former management are jostling for control of TNP SRT, investors may wonder how is this conflict going to improve their current situation. Distribution payments continue to be indefinitely suspended and the TNP SRT shares were reportedly selling for a deep discount on some secondary markets.