Bristol Investment withdraws nominees for election to Advocat board

By Lisa Kerner

Charlotte, N.C., May 7 - Bristol Investment Fund, Ltd. said it is withdrawing its slate of two director nominees for election to Advocat, Inc.'s board of directors after the company included Bristol's shareholder proposal in its definitive proxy.

It was previously reported that Bristol nominated its principal and manager, Paul Kessler, and Richard McKilligan, general counsel, chief financial officer and secretary of Derycz Scientific, Inc.

According to a schedule 13D filing with the Securities and Exchange Commission, Bristol believes that its shareholder proposal provides a "meaningful method for shareholders to express their concerns about the company."

In March 2007, Bristol recommended that the board start an auction process, solicit offers for the company or engage in discussions with strategic buyers and that the board refrain from expansion opportunities and instead focus on a stock buyback plan.

The investor reserves the right to communicate with Advocat's board, management and shareholders and to call a special meeting of shareholders, the filing said.

Bristol beneficially owns 294,834 shares, or 5.13%, of Advocat's stock.

Advocat, located in Brentwood, Tenn., provides long-term care services to nursing home patients.

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