Medley Capital Accused of Adjourning Feb 8 Shareholder Meeting to Preclude Vote on Merger With Sierra

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Medley Capital ( MCC ) was issued a demand late Thursday by a shareholder to make its books and records available for inspection related to the adjournment of a special stockholder's meeting that the shareholder claims was done improperly to avoid a vote that may have rejected a merger proposal.

Highland Select Equity Master Fund, an investment vehicle associated with NexPoint Advisors, said in a statement that a decision to adjourn a Feb. 8 stockholders meeting was an attempt by Medley Management ( MDLY ) to preclude a shareholder vote on the merger proposal between affiliate Sierra Income and Medley Capital. Both Sierra and Medley Capital are controlled, directly or indirectly, by Medley Management. The closing of the Medley Capital merger is contingent upon Medley Management merging with and into a wholly owned subsidiary of Sierra.

Select believes that the company did not have the authority to adjourn the shareholder meeting on Feb 8 as only the shareholders can request an adjournment. And even though Medley changed the company bylaws on Feb 6 to allow the company to call for an adjournment, the adjournment was announced Feb 5, thereby making it invalid, Select said.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , ETFs
Referenced Symbols: MCC , MDLY

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