NEW YORK, NY--(Marketwired - Sep 13, 2013) - Brantley Capital Corporation (the "Company") (formerly NASDAQ: BBDC) today announced that it intends to make a final liquidating distribution of approximately $30,000 (or less than $0.01 per share), representing substantially all its cash on or about September 18, 2013. The Company has no other assets and knows of no material liabilities. Simultaneously, the Company shall commence its dissolution in the state of Maryland, and the winding-up of its affairs.
On April 11, 2007, the Company's stockholders approved a proposed Plan of Liquidation and Dissolution (the "Plan"). Pursuant to the Plan, a substantial portion of the Company's cash has previously been distributed to shareholders.
The Securities and Exchange Commission controls $957,000 held in a Fair Fund representing a payment made in October 2010 by Robert Pinkas, the CEO of the Company's former investment advisor, to settle an enforcement action brought by the Commission. The Commission had long led the Company to believe that it would support a distribution to the Company of the Fair Fund monies. Despite the fact that the Company at the Commission's request, incurred substantial expenses to aid it in its prosecution of Mr. Pinkas, and such aid was essential to the creation of the Fair Fund, the Commission ultimately decided, over the Company's protests, to distribute the Fair Fund monies to certain former shareholders of the Company.
Pursuant to Section 308(a) of the Sarbanes-Oxley Act 2002, the plan of disbursement of the Fair Fund required approval by the United States District Court of the Northern District of Ohio. The Company petitioned the District Court to order the Fair Fund monies to be disbursed to the Company for distribution to its shareholders. However, the District Court, over the Company's objection and without explanation, approved the Commission's proposal.
Phillip Goldstein, the Company's Chairman commented: "We knew long ago that Mr. Pinkas was not to be trusted. Unfortunately, the shareholders of Brantley have now learned another costly lesson -- that the SEC too is not always forthright about its intentions." The Company has established a website at www.brantleycapitalcorporation.com to provide information about the Company and the events leading up to the ruling.
The Company
Brantley Capital Corporation, formerly a business development company, is currently in the process of winding up its affairs, pursuant to the Plan of Liquidation and Dissolution as previously approved by shareholders.
Contact Information:
CONTACT:
Ben Harris
(402) 770-6296
Phillip Goldstein
(201) 556-0092