NEW YORK, NEW YORK--(Marketwire - Sept. 12, 2012) - Somerset Capital Management ("Somerset") released the following statement this afternoon:
Ross Taylor of Somerset today said: "We are disappointed but not surprised by the company's announcement of last night, as we had developed serious concerns about the veracity and integrity of the strategic review process. We believe that the assets of Red Lion Hotels are worth a significant premium to the enterprise value of the company at yesterday's close, and are of the opinion that the failure of the process to develop a bid or a liquidation strategy for the company is a reflection on how the process was handled, rather than on the underlying value of the company's assets. To this end while we are pleased to see Donald and Richard Barbieri resigning from the board, it is our belief they should leave immediately and be replaced by individuals nominated by Columbia Pacific and other substantial shareholders. Additionally, and importantly, the Special Committee should be repopulated with truly outside directors and re-charged with developing the best possible offer or liquidation plan to present to shareholders in order to allow us, not the investment banker or special committee to determine whether it is adequate."
Somerset Capital Management is a New York-based money manager founded in 1999. It is a registered investment advisor and its flagship fund is Somerset Capital Partners, LP. Its principals have over 80 years combined investment experience.