By Tom Hals
WILMINGTON, Del., Sept 1 (Reuters) - A property management company that traces its blue-blood lineage to the earliest existence of PPG Industries Inc and the American Revolution opted to file for bankruptcy on Wednesday rather than be taken over.
Pitcairn Properties Holdings Inc, which traces its corporate family tree back to 19th Century founding of Pittsburgh Plate Glass Co by John Pitcairn, fled to bankruptcy court for fear of losing its investments worth hundreds of millions of dollars.
On Friday, the company was going to ask a Delaware state court judge to prevent Philadelphia investor Eric Blum from exercising his right as a preferred shareholder to name a controlling number of board seats.
That would put Blum in control of a company which owns and manages more than $800 million of real estate assets, including 3.5 million square feet of office space.
Blum has argued he obtained the right when Pitcairn failed to make scheduled dividend payments on his $50 million of shares. Fearing it might lose the Delaware case, the company filed for bankruptcy, according to court documents.
Blum did not immediately return a call for comment.
The Pitcairns are among Philadelphia's richest families and are known in the city for philanthropic work. Court documents claim that John Pitcairn's grandfather fired the 1775 'shot heard 'round the world' that set off the American Revolution.
Other descendants dabbled in aviation, leading to the founding of Eastern Airlines and the invention of the helicopter, according to the court papers.
Pitcairn said in court documents it is not insolvent and intends to file a plan of reorganization that pays all claims in interest. Blum's dividends will be paid within two years, according to court documents.
The case is In re Pitcairn Properties Holdings Inc, U.S. Bankruptcy Court, District of Delaware, No. 10-12764.
(Editing by Bernard Orr) Keywords: PITCAIRNPROPERTY/BANKRUPTCY (thomas.hals@thomsonreuters.com; 1-610-544-2712; Reuters Messaging thomas.hals.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
WILMINGTON, Del., Sept 1 (Reuters) - A property management company that traces its blue-blood lineage to the earliest existence of PPG Industries Inc and the American Revolution opted to file for bankruptcy on Wednesday rather than be taken over.
Pitcairn Properties Holdings Inc, which traces its corporate family tree back to 19th Century founding of Pittsburgh Plate Glass Co by John Pitcairn, fled to bankruptcy court for fear of losing its investments worth hundreds of millions of dollars.
On Friday, the company was going to ask a Delaware state court judge to prevent Philadelphia investor Eric Blum from exercising his right as a preferred shareholder to name a controlling number of board seats.
That would put Blum in control of a company which owns and manages more than $800 million of real estate assets, including 3.5 million square feet of office space.
Blum has argued he obtained the right when Pitcairn failed to make scheduled dividend payments on his $50 million of shares. Fearing it might lose the Delaware case, the company filed for bankruptcy, according to court documents.
Blum did not immediately return a call for comment.
The Pitcairns are among Philadelphia's richest families and are known in the city for philanthropic work. Court documents claim that John Pitcairn's grandfather fired the 1775 'shot heard 'round the world' that set off the American Revolution.
Other descendants dabbled in aviation, leading to the founding of Eastern Airlines and the invention of the helicopter, according to the court papers.
Pitcairn said in court documents it is not insolvent and intends to file a plan of reorganization that pays all claims in interest. Blum's dividends will be paid within two years, according to court documents.
The case is In re Pitcairn Properties Holdings Inc, U.S. Bankruptcy Court, District of Delaware, No. 10-12764.
(Editing by Bernard Orr) Keywords: PITCAIRNPROPERTY/BANKRUPTCY (thomas.hals@thomsonreuters.com; 1-610-544-2712; Reuters Messaging thomas.hals.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.