| ROCHESTER, N.Y., July 26, 1999 - Hudson Hotels Corporation,
(Nasdaq: HUDS) (�Hudson� or the �Company�) today announced that it has
completed an agreement with the Oppenheimer Convertible Securities Fund
(�Oppenheimer�), the holder of a $7.5 million debenture from the Company
to reduce the face amount of the debenture to $3.0 million. This reduction
will result in an immediate extraordinary gain for Hudson in the third
quarter of 1999 in the amount of approximately $4.0 million. The revised
debenture also modifies the maturity date, interest rate and conversion
price of the debt.
Commenting on this event, E. Anthony Wilson, Hudson�s Chairman and Chief
Executive Officer said, �the Company�s shareholders will directly benefit
by obtaining an immediate approximately $4.0 million addition to shareholder�s
equity. The extraordinary gain will not be subject to tax due to the use
of the Company�s net operating loss carryforward.� Mr. Wilson commented
further, �the Company is very pleased with this transaction and feels that
it accomplishes a very significant step in the Company�s overall restructuring
plans. Hudson continues to work with its advisors at Chase Securities Inc.
and is optimistic that further progress in the restructuring process will
be made later this year.�
Hudson Hotels Corporation is a Rochester, New York-based leading limited-service
hotel development and management company. Hudson manages primarily well-known
national hotel brands pursuant to franchise agreements from Marriott International,
Inc. (NYSE: MAR), Promus Hotels Corporation (NYSE: PRH), Choice Hotels
International, Inc. (NYSE: CHH), Red Roof Inns, Inc. (NYSE: RRI), and U.S.
Franchise Systems, Inc. (Nasdaq: USFS). The Company owns 25 hotels
and has agreements to manage a total of 47 hotels with 5,134 rooms.
Except for the historical information presented in this press release,
the press release includes forward looking statements that involve risks
and uncertainties including, but not limited to, quarterly fluctuations
and results, the management of growth, competition and other risks detailed
in the company�s Securities and Exchange Commission filing. Actual results
may differ materially from such information as set forth herein. |
