Equus Sells Three Related Investments for Ten Million in Cash
February 01 2011 - 7:00AM
Business Wire
Equus Total Return, Inc. (NYSE: EQS) (“Equus” or the “Fund”)
today announced that its promissory notes from 1848 Capital
Partners, LLC (“1848”), Big Apple Entertainment Partners, LLC (“Big
Apple”), and London Bridge Entertainment Partners, LLC (“London
Bridge”), have been sold in exchange for $10 million in cash to an
undisclosed investment group. As part of the transaction, $200,000
of the purchase price was allocated to Riptide Entertainment, LLC
(“Riptide”).
In previous periods, the operating results of each of these
companies had declined, and collectibility of the notes was
therefore called into question, the result of which was the decline
in valuation of these investments. As of September 30, 2010, the
last date on which the Fund’s net asset value was calculated, the
Fund’s holdings were valued at $299,163 for 1848, $2,283,245 for
Big Apple, $807,379 for London Bridge; and zero for Riptide, for a
collective total of $3,389,787.
All of the notes in question were unsecured with senior
liquidity rights and each had personal guarantees from the
principals of the respective underlying companies. As previously
disclosed in the Fund’s quarterly report on Form 10-Q for the
three-month period ended September 30, 2010, the notes from London
Bridge and Big Apple were in default. The Fund had accelerated the
maturity of the London Bridge note, and made demand for payment of
both London Bridge and Big Apple. In addition, the note from 1848
had also matured and was due in full.
Riptide is a holding company controlled by the Fund that owned
various equity, debt and other economic interests in Big Apple,
London Bridge and DCAB Entertainment Partners, LLC and various
entities related to these companies. As part of the transaction,
the buyer required that all of the holdings of Riptide be
transferred to the buyer or be terminated. As a result, Riptide was
allocated approximately $200,000 cash from the transaction, which
was sufficient to satisfy its outstanding liabilities.
“We are pleased to conclude this transaction, particularly in
light of the recent performance of these investments,” said John
Hardy, Executive Chairman of Equus. “We are extremely appreciative
of the principals of 1848 and their diligent efforts to work with
us to achieve this end.”
About Equus
The Fund is a business development company that trades as a
closed-end fund on the New York Stock Exchange, under the symbol
"EQS". Additional information on the Fund may be obtained from the
Fund’s website at www.equuscap.com.
This press release may contain certain forward-looking
statements regarding future circumstances. These forward-looking
statements are based upon the Fund’s current expectations and
assumptions and are subject to various risks and uncertainties that
could cause actual results to differ materially from those
contemplated in such forward-looking statements including, in
particular, the risks and uncertainties described in the Fund’s
filings with the SEC. Actual results, events, and performance may
differ. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as to the date hereof.
The Fund undertakes no obligation to release publicly any revisions
to these forward-looking statements that may be made to reflect
events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events. The inclusion of any statement
in this release does not constitute an admission by the Fund or any
other person that the events or circumstances described in such
statements are material.
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