EXHIBIT 99.1
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AT THE TRUST
Robert G. Higgins Investor Relations
First Vice President, General Counsel L.G. Schafran - Chairman and
630-218-7255 Interim CEO/President
bhiggins@banyanreit.com 630-218-7250
ir@banyanreit.com
FOR IMMEDIATE RELEASE
THURSDAY, JANUARY 2, 2003
BANYAN STRATEGIC REALTY TRUST TO DISSOLVE AND TERMINATE
AT CLOSE OF TRADING ON JANUARY 2, 2003
OAK BROOK, ILLINOIS -- JANUARY 2, 2003 -- BANYAN STRATEGIC REALTY TRUST
(OTCBB:BSRTS) announced today that it will complete its termination and
dissolution at the close of trading on January 2, 2003 by the transfer of
all of Banyan's remaining assets and liabilities into the newly-formed BSRT
Liquidating Trust. Banyan's shareholders will automatically receive an
uncertificated interest in the BSRT Liquidating Trust, equal to their prior
interest in Banyan. The Liquidating Trust interests will not be listed on
any stock exchange and will not be exchangeable or transferable, except by
operation of law. The Liquidating Trust will be administered by Banyan's
current First Vice President and General Counsel, Robert G. Higgins, as the
Primary Liquidating Trustee, and current Interim President and CEO, L. G.
Schafran, as the Secondary Liquidating Trustee.
Banyan adopted a Plan of Termination and Liquidation on January 5, 2001.
The Plan called for the liquidation of all of Banyan's assets as soon as
practical but provided that a liquidating trust could be established if, in
the judgment of Banyan's Board of Trustees, all liabilities could not be
discharged or adequately provided for within a two-year period. Banyan
sold its entire real estate portfolio, realizing more than $250 million in
gross proceeds, and has, to date, made a total of $5.45 per share in
liquidating distributions to its shareholders. However, Banyan remains
involved in a lawsuit with its suspended President Leonard G. Levine that
has been pending since October of 2000. Banyan announced in October of
2002 that no further distributions would be made to its shareholders until
the litigation with Mr. Levine was completed. The Liquidating Trust will
take over the management of that litigation.
The transfer into the Liquidating Trust constitutes a distribution, in
kind, to Banyan's shareholders, the effect of which must be reported by
Banyan's shareholders on their individual income tax returns for the year
2003 (filed in the spring of 2004). With Banyan now out of existence, the
BSRT Liquidating Trust will fulfill Banyan's obligation to cause Form
1099's to be issued to Banyan's shareholders for the calendar year 2002 and
for the distribution into the Liquidating Trust in January of 2003. The
2002 Form 1099 will reflect each shareholder's allocated portion of the
liquidating distributions made in 2002. The 2003 1099 will reflect each
shareholder's allocated portion of the distribution into the Liquidating
Trust.
MORE
BANYAN STRATEGIC REALTY TRUST
ADD 1
In other news, Banyan announced that the Liquidating Trust will continue to
maintain Banyan's website at www.banyanreit.com and will establish offices,
effective January 6, 2003, at the following address:
BSRT Liquidating Trust
% Robert G. Higgins, Trustee
55 East Monroe Street, Suite 3850
Chicago, IL 60603
Banyan Strategic Realty Trust was an equity Real Estate Investment Trust
that adopted a Plan of Termination and Liquidation on January 5, 2001. On
May 17, 2001, the Trust sold approximately 85% of its portfolio in a single
transaction. The remaining properties were sold on April 1, 2002, May 1,
2002 and October 16, 2002. Since adopting the Plan of Termination and
Liquidation, Banyan has made liquidating distributions totaling $5.45 per
share. On January 2, 2003, Banyan will be dissolved and terminated. As of
its termination, the Trust had 15,496,806 shares of beneficial interest
outstanding.
Except for the historical information contained herein, certain matters
discussed in this release are forward-looking statements, the achievement
of which involve risks and uncertainties, such as the amount of any
remaining liquidating distributions, the outcome of pending litigation and
other risks and uncertainties that are detailed from time to time in the
Trust's reports filed with the Securities and Exchange Commission,
including the Report on Form 10-K for the year ended December 31, 2001,
which was filed with the Securities and Exchange Commission on March 21,
2002. Please see also the "Management's Discussion and Analysis of
Financial Condition and Results of Operations" section which was included
in our Form 10-Q for the quarter ended September 30, 2002 which was filed
with the Securities and Exchange Commission on November 6, 2002. Without
limitation, in the foregoing release, words such as "anticipates",
"expects", "intends", "plans", and similar expressions are intended to
identify forward-looking statements.
See Banyan's Website at http://www.banyanreit.com.
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