Burkle Backs Morgans' Board, Rips Dissident Slate

Law360, New York (June 5, 2013, 4:36 PM EDT) -- Ron Burkle, Morgans Hotel Group Co.’s biggest creditor, on Wednesday threw his weight behind the incumbent board and its plan to possibly sell the company, sharpening the battle lines as shareholders start casting votes ahead of next week's meeting.

Burkle, whose Yucaipa Cos. LLC owns about $230 million worth of Morgans’ debt and preferred shares, said he supported Morgans’ exploring its options, though he added that he is not interested in buying the company.

Instead, Burkle is seeking to swap his securities for a Miami hotel...
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