CHICAGO-Shareholders with Prime Group Realty Trust, based here, voted overwhelmingly to approve a merger of the company with Five Mile Capital Partners LLC, a Connecticut alternative investment and asset management company. Shareholders cast their votes at a special meeting on Dec. 5 in Chicago.

According to Prime Group's charter, an affirmative vote of the holders of a majority of the company's 6.2 million outstanding common shares and at least two-thirds of the company's 4 million outstanding Series B preferred shares were required to approve the merger. All the common shares of Prime Group voted in favor of the merger, while 2.9 million of the Series B preferred shares voted in favor. File Miles holds 100% of Prime's outstanding common shares and approximately 65% of the Series B preferred shares. The merger was approved by 97% of the Series B preferred shares and 74% of the total number of issued and outstanding Series B preferred shares.

According to a press release issued by Prime Group, the merger's closing has been delayed due to a putative class action lawsuit filed by Patricia Fox in United States District Court for the Northern District of Illinois. In the suit, plaintiff Patricia Fox is seeking declaratory and injunctive relief, including enjoining the completion of the proposed merger. Prime Group believes the allegations in the complaint have no merit and is defending the action.  

The release notes that the action has delayed the merger's closing until Dec. 13 or resolution of the plaintiff's motion for a preliminary injunction, whichever comes first. The release also notes that if Prime Group and Five Mile are preliminarily enjoined from completing the merger, the agreement could terminate.