Eagle Growth and Income Opportunities Fund Announces Second Liquidating Cash Distribution and Deferment of Transfer of Reserv...
August 20 2020 - 10:51AM
Eagle Growth and Income Opportunities Fund (the "Fund") (formerly
NYSE: EGIF) today announced its second liquidating cash
distribution and a deferment of the estimated date on which it had
anticipated contributing certain of its net assets to a liquidating
trust in complete liquidation of the Fund. The deferment is
due to recent developments, as discussed below, in connection with
claims threatened, as previously announced, by the Fund's former
investment adviser, Four Wood Capital Advisors, LLC ("FWCA"), and
its parent, Four Wood Capital Partners, LLC (together with FWCA,
"Four Wood"), as a result of a decision by a majority of the Fund's
Trustees, after months of review, to pursue a strategic alternative
for the Fund other than the one for which FWCA would have received
compensation.
On August 24, 2020, the Fund will distribute to
shareholders of record as of the close of business on July 27, 2020
$0.10 per share in a second cash liquidating distribution.
Together with the Fund's first liquidating distribution of $8.75
per share on August 3, 2020, this represents a return to
shareholders of 64.2% of the Fund's net asset value per share as of
July 31, 2020, and 92.6% of the Fund's net asset value per share as
of July 31, 2020, excluding the Fund's net assets that the Fund's
Board of Trustees (the "Board") has determined to reserve to cover
contingent liabilities (the "Reserve"). The Reserve was
established by the Board principally to provide for, among other
things, contingent liabilities associated with the litigation
threatened by Four Wood.
The deferment will permit the Board to consider
a written demand it recently received, made on behalf of certain
shareholders of the Fund asking that the Fund sue Four Wood for a
declaratory judgment that it has no potential claims against the
Fund, as well as for damages to the Fund arising from Four Wood's
conduct or, alternatively, that the Board consent to such investors
suing Four Wood derivatively on behalf of the Fund. As
permitted by applicable law, the Board has formed an independent
committee to consider this demand. There is no fixed
time frame for the committee to complete its review of the
demand.
In light of the demand, the transfer of the
Reserve, which had been contemplated to occur on or about August
20, 2020 (the "Transfer"), has been delayed. The Fund will
announce additional information with respect to the timing of the
Transfer and the distribution of interests in the liquidating trust
and any remaining net assets of the Fund when that information is
available.
As part of winding up its affairs, the Fund has
undertaken to pay known expenses of the Fund incurred in the
ordinary course of its business and in connection with its
liquidation. As a result, the amount of the Fund's net assets
available for distribution to shareholders has been, and will
continue to be, reduced by an amount equal to those expenses
through the date of the Transfer.
Shareholders may recognize gain or loss for U.S.
tax purposes as a result of the liquidation. Gain or loss
will generally be measured as the difference between the sum of the
cash liquidation distributions and fair value of the equity
interest in the liquidating trust received, and the shareholder's
tax basis in the shares of the Fund. The Fund does not provide tax
advice and investors should consult their individual tax adviser
regarding the tax treatment applicable to a liquidating
distribution and any other payments received in connection with the
liquidation.
About Eagle Growth and Income
Opportunities Fund
The Fund is a diversified, closed-end management
investment company that is advised by First Eagle Alternative
Credit, LLC.
About First Eagle Alternative Credit,
LLC
First Eagle Alternative Credit is an alternative
credit investment manager for both direct lending and broadly
syndicated investments through public and private vehicles,
collateralized loan obligations, separately managed accounts and
co-mingled funds. First Eagle Alternative Credit maintains a
variety of advisory and sub-advisory relationships across its
investment platforms. First Eagle Alternative Credit is a wholly
owned subsidiary of First Eagle Investment Management, LLC.
Forward-Looking Statements
Statements included herein may constitute
"forward-looking statements", which relate to future events or our
future performance or financial condition. These statements are not
guarantees of future performance, condition or results and involve
a number of risks and uncertainties. Actual results may differ
materially from those in the forward-looking statements as a result
of a number of factors, including those described from time to time
in our filings with the Securities and Exchange Commission.
The Fund undertakes no duty to update any forward-looking
statements made herein.
Contact the Fund at 1.833.845.7513 or
visit the Fund's website at http://feacegif.com for additional
information.
Contact
Andrew ParkFirst Eagle Alternative Credit,
LLC212.829.3126
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