Jurisdiction Over "Removal Of Ownership Rights"
In Reference to the Bankruptcy of Boston CHICKEN and my Rights of Ownership
See also -- Securities Act of 1933 (Securities Act); Securities Act of 1934 (Exchange Act); Macroeconomics of the Federal Reserve Board of Governors Monetary Policy

Dear Mr. Levitt and Mr. Greenspan,

I am writing this letter as a concerned shareholder. The reason this letter is being sent to both the SEC and The Federal Reserve Bank is that I am uncertain as to the governing body for such matters. Any help that you can provide me with will be greatly appreciated.

My situation is as follows:

  1. My wife and I own a total of 200 shares of Boston Markets (BOSTQ)
  2. The management of Boston Markets and/or other news agencies have made reports such as these --

    GOLDEN, Colo., Nov 6 (Reuters) - "Boston CHICKEN is working to reduce its current debt of over $900 million by nearly two-thirds and hopes to swap $627 million in convertible debt for equity."

    SOURCE: Boston CHICKEN, Inc. / Company Press Release - ``As part of our reorganization, we are working to reduce our current debt of over $900 million by nearly two-thirds. We hope to exchange our three issues of subordinated convertible debentures, totaling approximately $627 million, for equity. A reduced debt burden, the recent closing of underperforming restaurants, continued efforts to improve operational performance and our strong brand image are the cornerstones of our plan of reorganization,'' said Lawrence E. White, Boston CHICKEN executive vice-president and chief financial officer.

My questions are these:

  1. Are they trying to tell me that "they" are going to take my ownership rights away?
  2. If so, is there any law that would protect me from such an atrocity?
  3. In the event that they take my equity and sell it to someone else, would such an event be considered the "issuing of securities", and therefore; fall under the SEC?
  4. Would such an event fall under the SEC because it helps "prevent the promotion of equitable and fair operations in securities markets"?
  5. Or, would such a transfer of ownership rights be considered as an impact on monetary policy; therefore, falling under the Federal Reserve Board (since "no one person, group, or sector" should be able to exert enough leverage to dominate the direction of monetary policy?)
  6. If all else fails in my attempt to find justice, is Boston Markets' management obligated to consider a simple turnaround plan prior to taking my ownership away (such as, changing the name on the outside of the restaurants to "Boston CHICKEN".)

I apologize for the sloppy structure to this letter, but I am concerned that time may be of the essence... and my ownership may disappear before I have a chance to take action.

Thank you. I shall await your advice.

cc: Lawrence White, CFO Boston CHICKEN

Back To The Index






1998