SAN DIEGO — Fabulous Inns of America, the controversial company with only one hotel--located in Mission Valley--will be taken over by a court-appointed receiver next month if two groups of squabbling shareholders don't settle their litigation out of court.
Superior Court Judge James A. Malkus said Tuesday that he would appoint a receiver for the embattled hotel company next month and ordered both sides to submit a list of possible candidates.
Also, Malkus said he will rule Feb. 5 on management's motion to dissolve the corporation, which has been mired in litigation for several years--first by several one-time dissidents who took control of the company and, recently, by two warring factions within the former dissident group.
The liquidation value of the company is about $7 per share, not including liquidation costs, according to Fabulous Inns officials. The stock trades at less than $4 per share.