Dissidents on Fabulous Inns’ Board Resign : Tentative Accord Would Stay Liquidation Action
The long-running legal battle being fought by various factions on Fabulous Inns’ board of directors evidently ended Wednesday with a tentative settlement that would also stay liquidation proceedings against the hotel company, owner of a Mission Valley hotel.
In a brief press release, the embattled company’s directors reported that dissident shareholders Jeffrey Krinsk and David Yardley have agreed to resign their board positions. Frank E. Ferreira was elected to serve as chairman of a new board that includes former board members F. Joseph Letson and Norman J. Caldwell.
Liquidation proceedings that began early this year have been stayed pending finalization of the tentative settlement that was reached Tuesday, according to the press release.
The liquidation proceedings were ordered by Superior Court Judge James A. Malkus. A court-appointed receiver had been trying to sell off the hotel company’s assets.
An attorney representing the Ferreira, the new board chairman, declined to comment on terms of the agreement.
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