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Ashford Files Injunction To Freeze Sessa From Paying Investor Redemptions

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Ashford Inc. (NYSE MKT: AINC) ("Ashford" or the "Company") today announced that it requested that a Texas state court issue an injunction to prevent Sessa Capital ("Sessa") from paying redemption requests made by its investors. The Company filed a lawsuit claiming tortious interference, together with additional claims including conspiracy, alleging monetary damages potentially exceeding $200 million as well as other non-monetary relief against Sessa and its purported director nominees John E. Petry, Philip B. Livingston, Lawrence A. Cunningham, Daniel B. Silvers, and Chris D. Wheeler on March 23, 2016.

On the same day, Sessa filed a presentation regarding Ashford Hospitality Prime, Inc. ("Ashford Prime") with the Securities and Exchange Commission ("SEC"). As part of that presentation, on page 34, Sessa states its intention to "explore all options to invalidate or renegotiate the termination fee." The Company believes Sessa hereby admitted its intention to tortiously interfere with the advisory agreement between the Company and Ashford Prime ("Advisory Agreement"). This persistent bullying of Ashford Prime and insistence on terminating or renegotiating the performance of Ashford Prime's legally binding contractual obligation to the Company under the Advisory Agreement is precisely why the lawsuit was filed last week. Efforts to ask a court to prevent Sessa's payments of redemptions to investors in Sessa are necessary to ensure funds in excess of $200 million are collectible upon a successful ruling on the lawsuit.

Ashford provides global asset management, investment management and related services to the real estate and hospitality sectors.

 

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