Activists Square Off Over Morgans Hotel Recap

Law360, New York (April 2, 2013, 5:18 PM EDT) -- A $230 million debt-for-equity recapitalization of Morgans Hotel Group Co. is setting up a showdown between two activist investors: OTK Associates LLC, the company's biggest stockholder, and Ron Burkle's Yucaipa Cos. LLC, its biggest creditor. 

On Monday, Morgans announced a plan to transfer a Miami hotel and a Las Vegas management group to Yucaipa to wipe out debt, preferred stock and warrants that Yucaipa had purchased in 2009. The move comes after a yearlong effort by a special board committee to cut debt ahead of 2014...
To view the full article, register now.