DS Advisors Recommends Holders Vote Against Lakeview Hotel Investment Corporation's Proposal to Delay Principal and Interest Payments on the Series C and Series D Debentures

NEW YORK, Nov. 11, 2016 /CNW/ -- DS Advisors LLC is the beneficial holder of approximately $965,000 of the series C and $700,000 of the series D debentures of Lakeview Hotel Investment Corporation.

On October 28, 2016, Lakeview management announced a proposal to delay all principal and interest payments on the series C and series D debentures until August 2019. This proposal is the second time debenture holders have been asked to surrender significant rights and value. Last time, debenture holders agreed to extend their principal payments believing the company would make them whole. To date, this has not happened, and management's current proposal provides no assurance that this will ever happen.

For these reasons, DS Advisors recommends that debenture holders vote against management's proposal to delay principal and interest payments.

Management justifies their actions by asserting that Lakeview does not have the ability to repay the debentures when they are due. While this may be true, the company's proposal is not the only option available. We believe the best remedy is not to once again simply "kick the can down the road" on the backs of debenture holders. Instead, DS Advisors proposes Lakeview work toward a solution that respects the rights of the debenture holders and leaves the company with a sustainable capital structure.

Debenture holders and their representatives are encouraged to contact Jake Miller at DS Advisors to discuss this situation. Jake can be reached at jake_miller@dsadvisors.com or 646-480-9434.


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