Ameritrans Capital was a closed-end investment company formed in 1998 to originate loans and make investments for both current income and capital appreciation. Through its subsidiary, Elk Associates Funding Corporation, it historically made loans to finance the acquisition and operation of small businesses as permitted by the Small Business Administration.
Ameritrans also made direct loans to and directly invested in opportunities that Elk had historically been unable to make due to SBA restrictions. Ameritrans made loans which were primarily been secured by real estate mortgages or, in the case of corporate loans, generally were senior within the capital structure. The company focused its investments into four types of securities: 1) Corporate Loans Receivable; 2) Commercial Loans Receivable; 3) Life Insurance Settlements and 4) Equity Investments.
Elk stopped making new investments in 2012. On 10/31/12, Elk entered into a Settlement Agreement with the SBA pursuant to which Elk agreed to surrender its SBIC license. Elk also executed and delivered a Consent Order of Receivership appointing the SBA as permanent, liquidating receiver of Elk, to be filed by the SBA in the event that Elk failed to make payments. On 4/25/13, the United Stated District Court for the Eastern District of New York entered the Consent Order, in the proceeding entitled United States of America, on behalf of its agency, the United States Small Business Administration v. Elk Associates Funding Corp. (Case No. 2:13-cv-01326). The Court appointed the SBA as the receiver of Elk for the purpose of liquidating all of Elk’s assets and satisfying the claims of creditors.
On 7/22/13, the company appointed Robert C. Ammerman as interim Chief Executive Officer, President, Chief Financial Officer, Treasurer and Secretary. Ammerman is the Managing Member and co-founder of Capital Resource Partners, a Boston-based private equity firm established in 1987. Mr. Ammerman owned 122,736 shares of the 9 3/8% Cumulative Participating Preferred Stock (face value $12.00) and 31,607 shares of Common Stock. The Company also filed a Form 15 with the Securities and Exchange Commission to suspend the Company’s filing obligations pursuant to the Securities Exchange Act of 1934, as amended.
On 10/06/16, Ameritrans filed for bankruptcy under Chapter 7 in the United States Bankruptcy Court District of Massachusetts (Case No.16-bk-13842).