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Thanx for the heads up. I've been out of pocket all day so I wasn't aware of the halt.
Seeking Alpha had this to say which isn't much but its all we have for now.
Medley Management stock halted, news pending (updated)
Jul. 6, 2021 11:18 AMMedley Management Inc. (MDLY)MDLQ, MDLX By: Liz Kiesche, SA News Editor
Trading of Medley Management (NYSE:MDLY) stock is halted by NYSE at 11:09 AM ET due to news pending.
Also halted is Medley LLC 6.875% senior notes due 2026 (NYSE:MDLX) and Medley LLC 7.25% notes due 2024 (NYSE:MDLQ).
As of 10:57 AM ET, MDLY shares were up 1.7%.
Update at 3:17 PM ET:
MDLY shares and the notes are still halted. Note that on June 24, the company submitted an SEC filing disclosing that Howard Laiao, its CEO and chief investment officer resigned, as did its president, Dean Crowe, and its chief operating officer, David Richards.
The company hasn't named any replacements. All three, though, retain their roles at Medley LLC.
Source;
https://seekingalpha.com/news/3712976-medley-management-stock-halted-news-pending
Epic motion...great read!
People on Stocktwits think a merger is coming...smh.
The devil is in the details. We have New Information contained within Court Docket #0234
[...]
C. Brook Taube and Seth Taube
1. Breach of Fiduciary Duties
21. The First Day Declaration contains a brief reference to a failed tri-party merger in 2019 (the “Prepetition Transaction”) by and among certain affiliates of the Debtor: Medley Capital Corporation (“MCC”), SIC, and MDLY. Notably absent from this reference are any details as to why the merger failed.
22. In an 88-page Memorandum Opinion issued following a trial that included witness testimony and 800 trial exhibits,17 Vice Chancellor McCormick of the Delaware Court of Chancery held that the Brook Taube and Seth Taube (the “Taube Brothers”) and MCC’s special committee members breached their fiduciary duties to stockholders.
Vice Chancellor McCormick found that the Taube Brothers “dominated and controlled” the MCC board with respect to the proposed merger, and that “the timing, structure, initiation, and negotiation of the [Prepetition Transaction] were conceived for the purpose of — and did — advance the Taube Brothers’ interest at the expense of [MCC’s] other stockholders. In the events leading up to the [Prepetition Transaction], the Taube Brothers created an information vacuum, which they then exploited.” Exhibit C at 67.
23. The Initial Plan proposed to keep the Taube Brothers at the helm of the Debtor and its parent MDLY after emergence. Vice Chancellor McCormick’s findings, and the Debtor’s failure to make any mention of them in the First Day Declaration or the disclosure statement filed with the Initial Plan (the “Initial Disclosure Statement”), are particularly troubling in the context of this chapter 11 case.
2. Prepetition Transfers
24. Additionally, both before and after the failed merger, the Debtor made significant distributions (the “Prepetition Transfers”) to the Taube Brothers and other insiders and holders of the Debtor’s membership interests. During the period from 2017 to 2020, as the Debtor’s financial position was deteriorating, the aggregate distributions to such persons totaled over $44 million.
25. The propriety of the Prepetition Transfers were not addressed in the Initial Disclosure Statement. In fact, the Initial Disclosure Statement was devoid of any analysis regarding the Prepetition Transfers.
[....]
Source:
Court Docket #0234
https://www.kccllc.net/medley/document/list/5510
*Can you spell fraudulent transfer to the tune of FOURTY FOUR MILLION SMACKERS...if true!! The OCUC just threw the gloves off. This will now go from just another business gone sour bankrupt story to possible criminal activity. This is why the disgorgment clause is crucial. $44 MILLION DOLLARS is alot of cash to track down as to who got what when, how and why!
Stay tuned.
Marker:
Medley Management In (MDLY)
6.15 down -0.01 (-0.16%)
Volume: 120,965
MDLX - currently @ $2.12
MDLQ - currently @ $1.92
I think the OCUC has had enough of this Debtors shenanigans. Not only are they asking the court to not extend the debtors 120 day exclusivity period (which started the day after the filing on March 7th ending July 6th) but they have already formulated a draft POL.
OBJECTION OF THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS TO DEBTOR’S PROPOSED PAYMENT TO MEDLEY CAPITAL LLC FOR DEFERRED COMPENSATION PURSUANT TO THE FINAL ORDER (I) AUTHORIZING, BUT NOT DIRECTING, THE DEBTOR TO CONTINUE AND MAINTAIN ITS EXISTING CASH MANAGEMENT SYSTEM, BANK ACCOUNT AND BUSINESS FORMS, (II) AUTHORIZING THE CONTINUATION OF ORDINARYCOURSE INTERCOMPANY TRANSACTIONS, AND (III) GRANTING
[....]
8. Pursuant to the Cash Management Order, prior to making any Intercompany Transactions in excess of $200,000, the Debtor is required to provide three business days prior notice of such transaction, in which it must provide certain detail with respect to the purpose and amount of the transaction to certain parties, including the U.S. Trustee, counsel to U.S. Bank,11 and Strategic Capital Advisory Services, LLC, and the Cash Management Order allows for emergency relief to be sought from the Court with respect such Intercompany Transactions. Id.
9. The Debtor has informed the Committee that it is now seeking to make an approximately $662,000 Intercompany Transaction to Medley Capital for the purpose of allowing Medley Capital to make deferred compensation payments to certain of its employees relating to work done prepetition (the “Deferred Compensation Payments”). To be certain that these payments are beneficial to the Debtor’s estate and its creditors, the Committee has requested that they be made contingent on the implementation of reasonable measures to ensure that the Medley Capital employees remain with Medley Capital through the wind-down and liquidation process of the Company. As of the filing of this Objection, the Debtor has refused this request.
OBJECTION
10. The Committee acknowledges that to preserve a debtor’s value, it may at times be appropriate to pay certain employees on account of their pre-petition claims in order to retain those employees to allow the debtor (and its affiliates) to continue operating in the ordinary course. However, such payments, whether by a debtor, or by a non-debtor affiliate using funds transferred from such debtor, should only be made when they provide actual value to a debtor’s estate. Indeed this is what is required by section 503 of the Bankruptcy Code, which allows for the payment of administrative expenses that are “actual, necessary costs and expenses of preserving the estate.”12
11. The terms of the Cash Management Order permit Intercompany Transactions to maximize the value of the Debtor’s estate while providing the Debtor’s creditors with certain important protections with respect thereto. Based on the Debtor’s representations, the Committee is willing to allow funds to be transferred from the Debtor to Medley Capital to, among other things, pay employees to ensure a smooth wind-down of the business operations of the Company. Accordingly, to ensure that such employees provide this benefit, the Committee proposed that the Deferred Compensation Payments not be made unless such payments are subject to disgorgement in the event that an employee does not remain with the Company for such time as the recipient employee is needed to help facilitate an orderly wind-down of the Company’s business.
12. In response, the Debtor contends that Medley Capital is not a debtor, and that the Deferred Compensation Payments, therefore, do not need to meet the requirements of an administrative claim. The Debtor also claims that making the Deferred Compensation Payments subject to potential disgorgement will affect morale and lead to employee departures.
13. The Committee does not believe that potential disgorgement, a reasonable and customary safeguard to help preserve the value of the Debtor’s estate, will cause a mass exodus or otherwise affect employee morale. Indeed, the Committee supports the proposed Deferred Compensation Payments and structured its request to avoid that risk by allowing the Deferred Compensation Payments to be made at this time. Allowing for potential disgorgement merely ensures that the Debtor’s estate and its creditors receive a benefit from payment of prepetition claims that the Debtor would otherwise have no authority to make.
14. Unfortunately, the rejection of the Committee’s request exemplifies an emerging pattern in this chapter 11 case. The Debtor is utilizing the relevant sections of the Bankruptcy Code to its advantage with respect to basic protections such as the automatic stay and plan exclusivity, but seeks to avoid its strictures with respect to the remainder of the Company by arguing that Medley Capital and its other subsidiaries, through which the Debtor conducts its business, are non-debtors. The Committee believes that if it countenances this behavior now by inaction, the Debtor will continue to interpret the Cash Management Order to avoid the Committee’s and this Court’s oversight.
15. The Debtor may not pick and choose when to apply the Bankruptcy Code. The Debtor should only be permitted to obtain the benefits of the Bankruptcy Code if it accepts the requisite burdens and obligations. Intercompany Transactions pursuant to the Cash Management Order that permit Medley Capital and other non-debtor subsidiaries to make postpetition payments should only be permitted to the extent that they could, if made by the Debtor, satisfy the standards necessary to qualify as administrative expenses claims. Here, that means demonstrating that the Deferred Compensation Payments are actually necessary to preserve the value of the Debtor’s estate.
16. Making prepetition wage payments will not benefit the Debtor’s estate if the employees to whom they are made do not remain with the Company throughout the wind-down and liquidation process. Accordingly, the Intercompany Transaction to Medley Capital for the purpose of making the Deferred Compensation Payments should only be permitted if subject to disgorgement in the event that a recipient employee leaves the Company prior to the conclusion of such employee’s required contributions with respect to the wind-down and liquidation process. This will ensure that the Deferred Compensation Payments will confer a concrete benefit to the Debtor’s estate by making certain that the Company will have the staff it needs to liquidate efficiently and effectively.
[....]
Source;
Court Doc # 0219
https://www.kccllc.net/medley/document/list/5510
*Deferred Compensation payments in a bankruptcy (which are really just another unsecured claim) without the disgorgment clause is a crucial issue for the OUCC AND the Court..and rightfully so!
One reason why is the potential for fraudulent transfer(s)...which imo is always a possibilty in a bankruptcy case. It happens!
Current Report Filing (8-k)
June 24 2021 - 05:06PM
Edgar (US Regulatory)
On June 18, 2021, Howard Liao submitted his resignation as Chief Executive Officer and Chief Investment Officer of Medley Management Inc. (“MDLY”), Dean Crowe submitted his resignation as President of MDLY, and David Richards submitted his resignation as Chief Operating Officer and Chief Credit Officer of MDLY, with each such resignation effective as of June 18, 2021. Replacements for these positions at MDLY are not currently expected to be appointed at this time.
Following their resignations from their respective positions with MDLY, Mr. Liao continues to serve as Chief Executive Officer and Chief Investment Officer of Medley LLC, Mr. Crowe continues to serve as President of Medley LLC, and Mr. Richards continues to serve as Chief Operating Officer and Chief Credit Officer of Medley LLC.
Source:
https://ih.advfn.com/stock-market/NYSE/medley-management-MDLY/stock-news/85442233/current-report-filing-8-k
Marker:
Medley Management In (MDLY)
$6.1381 down -0.0519 (-0.84%)
Volume: 56,134
*The purpose of this wholesale move is certainly a curious one but unknown for those of us on the outside looking in.
* * $MDLY Video Chart 06-10-2021 * *
Link to Video - click here to watch the technical chart video
If one ever needed a bailout on a name, getting 'memed' is your chance.
Medley Management stock soars as retail investors tout stock on social media (6/10/21)
By: Liz Kiesche, SA News Editor
Amazing stuff...if "As the World Turns" wanted a new soap opera plot, here it is. What a mess.
Recent material events early on in 2021 re: Medley LLC that in turn had an effect on MDLY. What it all means is yet to be determined. Its just fyi information if you're following the Medley LLC saga.
Why it should be noted is this represents activity of a 16% ownership.
Angelic Diaz Taube SC 13GMEDLEY MANAGEMENT / Taube Angelic Diaz ownership change
(1) Pursuant to court approval of a marital settlement order for a divorce, on January 17, 2021, Ms. Taube acquired voting and dispositive power over 500,000 Class A units of limited partnership interest (“Medley LLC Units”) in Medley LLC, of which Medley Management Inc., a Delaware corporation (the “Issuer”), is the managing member. Pursuant to the terms of an exchange agreement, Medley LLC Units are exchangeable on a 1-for-1 basis for shares of Class A common stock, par value $0.01 per share (“Common Stock”) of the Issuer and have no expiration date. On January 19, 2021, Ms. Taube exchanged all 500,000 Medley LLC Units for 500,000 shares of Common Stock (the “Shares”), or 16.4% of the shares of Common Stock deemed issued and outstanding as of January 19, 2021. At the direction of Ms. Taube, the Shares were issued in the name of the Angelic D. Taube 2020 Revocable Trust (the “Trust”). As the sole trustee of the Trust, Ms. Taube has the full power and authority to amend or revoke the Trust and to retain, sell and vote the Shares.
(2) The percent of class in Row 11 is based on 3,045,177 shares of Common Stock issued and outstanding as of January 19, 2021 as stated by the Issuer in its Current Report on Form 8-K filed with the SEC on January 19, 2021
Source:
https://docoh.com/filing/1839324/0001213900-21-004523/SC13G
.
Insider Trading History of Taube Angelic Diaz
The following table details the insider trading activities (stock purchases, stock sales, and stock option exercises) of Taube Angelic Diaz since 2021. This trader's CIK number is 1839324. At the time of last reporting, Taube Angelic Diaz was the 10% Owner of Medley Management Inc.. (stock ticker symbol MDLY). Also see all insider trading activities at Medley Management Inc..
Yearly summary of insider trading at Medley Management Inc. (MDLY) by Taube Angelic Diaz
Insider Buying Insider Sales Option Exercises
Year Symbol Shares Value Shares Value Shares Value
2021 MDLY 0 $0 195,573 $1,387,211 0 $0
Insider trading of Medley Management Inc. (MDLY) by Taube Angelic Diaz
Trade Date Symbol Trade Type Shares Price ($) Value ($)
2021-05-12 MDLY Sale 45,407 5.92 268,627
2021-05-11 MDLY Sale 5,908 6.33 37,403
2021-04-23 MDLY Sale 18,465 5.00 92,306
2021-04-22 MDLY Sale 10,000 4.55 45,530
2021-04-19 MDLY Sale 2,001 6.33 12,660
2021-04-16 MDLY Sale 25,000 7.68 192,025
2021-04-15 MDLY Sale 88,792 8.32 738,660
Insider trading activities including stock purchases, stock sales, and option exercises listed in the above table cannot be completely guaranteed as to their accuracy. For more information regarding the trades made by Taube Angelic Diaz (10% Owner of Medley Management Inc. at the time of this reporting) see the Securities and Exchange Commission (SEC) website
Source:
https://www.insider-monitor.com/trader/cik1839324.html
Marker:
Medley Management In (MDLY)
4.63 up 0.09 (1.98%)
Volume: 492,438
MDLX currently @ $2.09
MDLQ currently @ $2.10
Not wrong.
Apparently there was some heartburn over Kravitzs role/involvment.
He was hand picked by the BoD a month before the filing. Does this mean that automatically should disqualify him? No. But this managing position must be filled by someone as verifiably independent as possible.
So its out with Kravitz and in with Dreyer..for now at least.
56Chevy I would appreciate your thoughts on 8k
Today’s 8k and amended LLC agreement reads like preparations for termination, am I wrong?
Michelle Dreyer specializes in this sort of thing.
Thanks.
-gochip
More 'Withdrawals'..definitely not a good sign when the paid professionals abandon ship.
Court Doc #0185
NOTICE OF WITHDRAWAL OF DEBTOR’S APPLICATION FOR ENTRY OF AN ORDERAUTHORIZING THE EMPLOYMENT AND RETENTION OF GELLERT SCALI BUSENKELL & BROWN, LLC AS COUNSEL TO PETER KRAVITZ, CHAIR OF THE INDEPENDENT SUBCOMMITTEE OF THE BOARD OF MEDLEY LLC NUNC PRO TUNC APRIL 14, 2021 [D.I 129]
Court Doc #0186
NOTICE OF WITHDRAWAL OF MOTION OF DEBTOR FOR ENTRY OF ORDER
AUTHORIZING AND APPROVING DEBTOR’S RETENTION
AND EMPLOYMENT OF ROCK CREEK ADVISORS LLC AS FINANCIAL
ADVISOR TO PETER KRAVITZ, CHAIR OF THE INDEPENDENT
SUBCOMMITTEE OF THE BOARD OF MEDLEY LLC
NUNC PRO TUNC APRIL 15, 2021 [D.I. 130]
Source:
https://www.kccllc.net/medley
* How this stock sells for more than 2 cents is a complete mystery!
Marker:
Medley Management In (MDLY)
4.6216 up 0.0916 (2.02%)
Volume: 152,990
MDLX currently @ $2.31
MDLQ currently @ $2.40
Medley Management receives non compliance letter from NYSE
Jun. 1, 2021 8:37 AMMedley Management Inc. (MDLY)
By: Meghavi Singh, SA News Editor
NYSE American notified Medley Management (NYSE:MDLY) of non compliance due to a delay in filing its quarterly report for the quarter ended March 31, 2021 with SEC.
The notice has no immediate effect on the listing or trading.
The company has until November 24, 2021 to file with the SEC; if it fails, the NYSE may grant a further extension of up to six additional months to regain compliance.
The Company continues to work diligently to complete and finalize the 10-Q and intends to file the Form 10-Q as soon as practicable.
[....]
Source:
https://seekingalpha.com/news/3701632-medley-management-receives-non-compliance-letter-from-nyse
.
Court Docket #0181
NOTICE OF WITHDRAWAL OF DEBTOR’S APPLICATION FOR
ENTRY OF AN ORDER AUTHORIZING THE EMPLOYMENT AND
RETENTION OF LOWENSTEIN SANDLER LLP AS COUNSEL TO THE DEBTOR
EFFECTIVE AS OF THE PETITION DATE
PLEASE TAKE NOTICE THAT the above-captioned debtor and debtor-in-possession (collectively, the “Debtor”), hereby provides notice of their withdrawal, without prejudice, of the Debtor’s Application for Entry of an Order Authorizing the Employment and Retention of
Lowenstein Sandler LLP as Counsel to the Debtor Effective as of the Petition Date [Docket No. 80] filed on April 1, 2021 with the United States Bankruptcy Court for the District of Delaware.
[....]
Source:
https://www.kccllc.net/medley
*appears the SEC objection was heard.
Marker:
Medley Management In (MDLY)
5.21 up 0.25 (5.04%)
Volume: 296,380
MDLX - $2.835
MDLQ - $2.86
Court Docket #0178
NOTICE OF APPEARANCE AND REQUEST FOR SERVICE OF PAPERS PLEASE TAKE NOTICE, that the Committee of Medley Noteholders hereby appears in the above-captioned matter by its counsel Schulte Roth & Zabel LLP, and Young Conaway Stargatt & Taylor, LLP, and requests, pursuant to sections 102(1), 342 and 1109(b) of title 11 of the United States Code (the "Bankruptcy Code") and Rules 2002, 3017, 9007 and 9010 of the Federal Rules of Bankruptcy Procedure (the "Bankruptcy Rules"), that any and all notices given or required to be given in this case and all papers served or required to be served in this case, be delivered and served upon the following:
[....]
Source;
https://www.kccllc.net/medley
*Another party enters the ring
Marker:
Medley Management In (MDLY)
4.91 down -0.05 (-1.01%)
Volume: 236,105
MDLX - $2.75
MDLQ - $2.72
Interesting side note in that the SEC objected to the debtors motion to allow Lowenstein Sandler LLC to represent them and the OCUC supported that request.
Is this a big deal? No..not really. Obviously any objections the OCUC counsel might of had were not large enough to make a fuss.
Todays hearing will sort it out.
Marker:
Medley Management In (MDLY)
4.42 down -0.05 (-1.12%)
Volume: 102,647
No surprises.
Wells Notices on average end up with enforcement actions taken against the recievers of the notices 95% of the time.
Medley Management (MDLY) Announces Regulatory Matter Update
May 13, 2021 5:28 PM
Medley Management (NYSE: MDLY) disclosed:
As previously reported, on March 7, 2021 (the “Petition Date”), Medley LLC (“Medley LLC”) commenced a voluntary case (the “Chapter 11 Case”) under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). In connection with the commencement of the Chapter 11 Case, Medley LLC disclosed in its pleadings filed with the Bankruptcy Court certain matters related to Medley Management Inc.’s (“MDLY”) and Medley LLC’s business, including the regulatory matter described below:
On September 17, 2019 the staff of the Securities and Exchange Commission’s Division of Enforcement (the “Staff”) informed MDLY that it was conducting an informal inquiry and requested the production and preservation of certain documents and records. MDLY fully cooperated with the Staff’s informal inquiry and began voluntarily providing the Staff with any requested documents.
By letter dated December 18, 2019, the Staff advised MDLY that a formal order of private investigation (the “Order”) had been issued and that the informal inquiry was now a formal investigation. The Order indicated that the investigation relates to Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 thereunder, and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940, Rule 206(4)-8, Sections 13(a) and 14(a) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, 13a-13, and 14a-9 thereunder. MDLY continued to cooperate fully with the investigation.
On May 7, 2021, each of MDLY, Medley LLC, and six pre-IPO owners of Medley, each of whom is a current or former officer (the “Individuals”) received a “Wells Notice” from the Staff relating to MDLY’s previously-disclosed SEC investigation. The Wells Notices provided that the proposed action would allege violations of Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder (including as a control person pursuant to Section 20(e) of the Exchange Act); Section 17(a) of the Securities Act of 1933; Sections 206(1) and/or (2) of the Investment Advisers Act of 1940; Section 14(a) of the Exchange Act and Rules 14a-3 and 14a-9 thereunder; Section 13(a) of the Exchange Act and Rules 12b-11, 12b-20, 13a-1, 13a-11, 13a-13, and 13a-15(a) thereunder; and Regulation S-T. The Wells Notices also provided that the Staff’s recommendation may involve a civil injunctive action, public administrative proceeding, and/or cease-and-desist proceeding, and may seek remedies that include an injunction, a cease-and-desist order, disgorgement, pre-judgment interest, civil money penalties, censure, and limitations on activities or bars from association.
A Wells Notice is neither a formal charge of wrongdoing nor a final determination that the recipient has violated any law. The Wells Notices informed MDLY, Medley LLC and the Individuals that the Staff has made a preliminary determination to recommend that the SEC file an enforcement action against MDLY, Medley LLC and each of the Individuals that would allege certain violations of the federal securities laws.
The Wells Notices relate to, among other matters: MDLY’s and Medley LLC’s disclosures relating to MDLY’s assets under management (“AUM”), its fee-earning assets under management (“FEAUM”), trends and risks related to AUM and FEAUM, and specifically, violations of the federal securities laws relating to such disclosures in MDLY’s registration statement relating to its initial public offering, Medley LLC’s registration statements relating to its bond offerings, and MDLY and Medley LLC’s periodic reports under the Exchange Act; MDLY’s and Medley LLC’s disclosure controls and procedures designed to ensure that the information required in reports filed under the Exchange Act; and MDLY’s financial projections included in a joint proxy statement/prospectus, including any amendments thereto, in connection with a proposed (but ultimately terminated) merger among MDLY, Sierra Income Corporation and Medley Capital Corporation.
MDLY, Medley LLC and the Individuals currently intend to pursue the Wells Notice process, which will include the opportunity to respond to the Staff’s position.
Medley LLC Plan of Reorganization Update
As previously reported, in connection with its Chapter 11 Case, Medley LLC filed with the Bankruptcy Court on the Petition Date a proposed Plan of Reorganization (“Plan”) and a proposed Disclosure Statement related thereto (“Disclosure Statement”). Pursuant to filings with the Bankruptcy Court, on May 13, 2021 [Bankruptcy Docket No. 147], Medley LLC withdrew its original Plan [Bankruptcy Docket No. 7] and Disclosure Statement [Bankruptcy Docket No. 8]. Medley LLC currently intends to file with the Bankruptcy Court an amended Plan and Disclosure Statement as soon as reasonably practicable. There can be no assurances that Medley LLC will obtain the Bankruptcy Court’s approval of an amended Disclosure Statement and/or confirmation of an amended Plan, or that if an amended Plan is confirmed, that the reorganization of Medley LLC will be successfully implemented as contemplated by such amended Plan.
Source;
https://www.streetinsider.com/dr/news.php?id=18418559
Marker:
Medley Management In (MDLY)
4.48 down -1.07 (-19.28%)
Volume: 262,481
MDLQ up today 10% @ $2.59
MDLX up today 12.8% @ $2.65
.
Thanks
How do you feel about the Wells Notice? Seems in reading the docket that the SEC has issues with how the board set up the BK. Even using "fraud" terms.
Hi. Confusion surrounding MDLY is understandable.
It could be argued this MDLY IHub board is technically not the correct place to post news & comments surrounding what at this point ONLY involves an entity of Medley Management Inc. That entity is Medley LLC.
The filing for banruptcy by Medley LLC included this;
· The Medley investment platform is comprised of a number of investment advisers and other related entities. Medley LLC is the only entity on the platform that has filed for Chapter 11 protection. Medley Management Inc. (NYSE: MDLY) (“MDLY”) and the other affiliated adviser entities on the Medley platform are not filing any bankruptcy petitions.
· Medley LLC will continue to operate its business as “debtor-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. To ensure its ability to continue operating in the ordinary course of business, Medley LLC has filed with the Bankruptcy Court motions seeking a variety of “first day” relief, including authority to continue utilizing and maintaining its existing cash management system.
Business operations across the Medley platform including providing investment and advisory services to its clients are continuing without interruption.
----------------
So what's this talk of bankruptcy all about?
Again MDLY, the parent company, DID NOT and has not filed for bankruptcy. At this point in time this bankruptcy (bk) ONLY involves MEDLEY LLC.
The only halt in trading I am aware of happened to MDLY's stock and it happened 2 months prior to their entity Medley LLC filing for bankruptcy protection.
Medley LLC is not a public company and has no common stock however Medley LLC did go out and publically raise approx $120MM from investors in the form of Senior unsecured Bonds. Upon raising the money Medley LLC issued two bonds..which are tradeable. They are MDLX and MDLQ.
MEDLEY LLC missed their obligation to pay interest on those Notes. Fast forward - MEDLEY LLC filed bankruptcy soon after.
The bottom line is approx. $120 Million dollars is gone..and the investors want to know 1) Why is it gone? 2) WHAT happened to it?..and 3) WHERE or to whom did it go? These are hard questions the debtor is going to have to answer.
Rumors you've heard this case is, or soon will be, a ch7 are at this time completely false and unfounded. The case as it stands right now remains a Chapter 11.
What may have confused you was todays posting that 'the Debtor's' Plan of Reorganization (POR) was withdrawn...and it was withdrawn by the Debtors themselves. Why? The odds of that POR succeeding were zero..and even the Debtors knew it.
All of the players in this bk are now assembled. And this bankruptcy case really begins now.
So why post information about a bankruptcy on a board of a stock that is not technically speaking "involved"? Its like having serious smoke coming out of one of the engine rooms of a large ship your on. Its information shareholders of the parent company have a right to know and should know. Right now the bankruptcy is "contained" solely within Medley LLC and the proper players are in place to embark on a fact finding mission and then hammer out a solution. That takes time. The wheels of justice can grind very slowly and get very expensive before its done.
I think it prudent for MDLY equity holders to know what the situation is. For example - Had the debtors POR been approved it not only would have been a major screwing to the Note holders but MDLY shareholders would have experienced major dilution they had no idea was coming.
Smoke & fire of this sort at MEDLEy LLC has the potential to spread "elsewhere" and quickly. That elsewhere could be to the parent MDLY.
Make sense?
56Chevy - question
Im trying to interpret whats happening here in light of the stock halt. Can you give clarity beyond what you've posted? Some are posting Ch7 is happening. You seem to post otherwise from the kccllc site.
Can you give some better laymans info for shareholders here on whats the current status?
TIA
Who is this caped crusader, this Carl W?
Court Docket # 0146
In light of building scrutiny, and to no ones surprise, this latest Docket [0146] made its appearance early in the day. What would that be you ask?? - The POR the debtor threw up against the wall on the day of the filing to see if by some miracle it would stick has been withdrawn.
Notice of Withdrawal of Chapter 11 Plan of Reorganization of Medley LLC (related document(s)[7]) Filed by Medley LLC. (Keilson, Brya)
Source:
https://www.kccllc.net/medley
*at the time of this posting the actual docket from kcc was not available to read..but the docket headline spells out everything you need to know.
We start over!
Marker:
Medley Management In (MDLY)
5.7101. Up 0.0301 (0.53%)
Volume: 56,456
Court Docket # 0142
NOTICE OF APPEARANCE, REQUEST FOR NOTICE, AND GOVERNMENT
ATTORNEY CERTIFICATION
The undersigned attorney is appearing on behalf of the U.S. Securities and Exchange Commission (the “Commission”) in this case pursuant to Rule 9010(b) of the Federal Rules of Bankruptcy Procedure. The Commission requests that a copy of all notices given or required to be given in these cases, be delivered to the following:
U.S. Securities and Exchange Commission
Atlanta Regional Office
Attn: William M. Uptegrove
950 East Paces Road, N.E.
Suite 900
Atlanta, GA 30326-1382
UptegroveW@sec.gov
[....]
Source;
https://www.kccllc.net/medley
*William M. Uptegrove
Senior Trial Attorney at U.S. Securities and Exchange Commission
https://www.linkedin.com/in/william-m-uptegrove-25a8207
Marker:
Medley Management In (MDLY)
$5.59 down -0.62 (-9.98%)
Volume: 402,057
.
Court Docket #0139
OBJECTION OF THE U.S. SECURITIES AND EXCHANGE COMMISSION TO
DEBTOR’S APPLICATION FOR ENTRY OF AN ORDER AUTHORIZING THE
EMPLOYMENT AND RETENTION OF LOWENSTEIN SANDLER LLP AS COUNSEL
TO THE DEBTOR EFFECTIVE AS OF THE PETITION DATE
The U.S. Securities and Exchange Commission (the “SEC”) hereby objects to Debtor’s Application For Entry Of An Order Authorizing The Employment And Retention Of Lowenstein Sandler LLP As Counsel To The Debtor Effective As Of The Petition Date [Docket No. 80]
(“Lowenstein Retention”) because Lowenstein is irreconcilably conflicted and should not be employed pursuant to Section 327(a) of the Bankruptcy Code due to its concurrent representation
of the Debtor and the Debtor’s parent (Medley Management, Inc. (“MDLY”)). The SEC is the federal agency responsible for regulating the U.S. securities markets, protecting investors, and
enforcing the federal securities laws. In that capacity, the SEC is formally investigating whether Debtor, Medley LLC (“Medley” or, the “Debtor”), and others, violated the anti-fraud and other
provisions of the federal securities laws. The SEC has filed a proof of claim [Claim No. 11] in this case in connection with its contingent unliquidated claim against Medley for penalties and
disgorgement.
[....]
Source:
https://www.kccllc.net/medley
Marker:
Medley Management In (MDLY)
6.15 up 0.29 (4.95%)
Volume: 756,508
PhenixFIN Corporaton: A Kidnapped Golden Goose Not Likely To Rise From The Ashes
Apr. 30, 2021 12:53 AM ETPFX, PFXNLGECC, GEG, MDLQ...2 Comments
Corporate Governance Cowboy's Blog
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.
Contributor Since 2013
I have nearly two decades of investing experience and corporate governance engagement. I have worked on M&A and restructuring transactions. I leverage my experience to provide an expert opinion to individual shareholders when good corporate governance practices aren't being followed.
Summary
Deafening silence from new management leaves shareholders in the dark, much like before under prior management.
Ainsberg and Garvey, two directors that breached fiduciary duty to shareholders are hanging around and giving themselves raises.
It is anyone's guess what is going on.
The Golden Goose seems to just have a new master.
[....]
To continue reading this SA blog with the 2 comments click the link;
https://seekingalpha.com/instablog/9537671-corporate-governance-cowboy/5585192-phenixfin-corporaton-kidnapped-golden-goose-not-likely-to-rise-from-ashes
Marker:
Medley Management In (MDLY)
5.37 down -0.15 (-2.72%)
Volume: 9,894
There are now mounting responses to things that went bump in the night on March 7th over at Medley LLC.
Some of those responses were public opinion pieces such as the one linked below but more recently we now have something far more formidable in the ring with the court appointed formation of an Official Unsecured Creditor Committee (OUCC).
The OUCC wasted no time and is in the process of securing professional representation.
Re: the opinion piece I felt it was worth passing on to this board. The author does a good job of laying out who is who in this bk and what is at stake.
It starts out;
New Chapter 11 Bankruptcy Filing - Medley LLC
AUM Drops Like an Anchor to the Bottom of the Bay
Mar 7
Medley LLC
NYC-based-but-DE-incorporation Medley LLC (the “Debtor”) is a direct subsidiary of Medley Management Inc. ($MDLY)(together with Debtor and the Debtor’s direct and indirect subs, the “Company”), a publicly traded business development corporation that focuses on originating senior secured loans to US-based private middle market companies with revenues between $50mm-$1b. The Company has $1.3b of AUM.
$1.3b of AUM still sounds impressive, right? Welllllllll…
· In 2018, the Company had $2.8b of AUM and total revenues of $56.5mm.
· In 2019, the Company had $2.1b of AUM and total revenues of ~$48.8mm, a decline of 23.2% and 13.6%, respectively.
· In 2020, the Company fell to $1.3b of AUM, a 38% decline. One can extrapolate that revenue dipped into the $20mms. The Company doesn’t specify in its bankruptcy papers.
The problem is that, while this particular corporate entity is somewhat remote in the overall MDLY structure, it does have publicly-traded debt held primarily by retail investors. The following issuances are outstanding:
$69mm of ‘24 7.25% senior unsecured notes
$53.6mm of ‘26 6.875% senior unsecured notes
......
(to continue reading click the link below)
https://petition.substack.com/p/medleybankruptcy
Marker:
Medley Management In (MDLY)
5.51 up 0.15 (2.80%)
Volume: 55,514
Tickers of interest are MDLQ & MDLX
.
Court Docket #0125
NOTICE OF APPEARANCE AND REQUEST FOR NOTICES PLEASE TAKE NOTICE that, pursuant to Rules 2002 and 9010(b) of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”), the undersigned counsel enter their appearance as proposed counsel for the Official Committee of Unsecured Creditors in the above-captioned case (the “Committee”) and request that all notices and other papers filed or served in the above-captioned case be served upon the following attorneys:
James S. Carr, Esq.
Benjamin D. Feder, Esq.
Sean T. Wilson, Esq.
KELLEY DRYE & WARREN LLP
Christopher M. Samis (No. 4909)
D. Ryan Slaugh (No. 6325)
Joseph D. Farris, III (No. 6657)
POTTER ANDERSON & CORROON LLP
Date filed: 4/28/2021
Source:
https://www.kccllc.net/medley
Marker:
Medley Management In (MDLY)
5.36 down -0.73 (-11.99%)
Volume: 221,856
Court Docket: #0110
Document Name: Notice of Appointment of Committee of Unsecured Creditors (Filed by U.S. Trustee)
Date Filed: 4/22/2021
Source:
https://www.kccllc.net/medley
.
Marker;
Medley Management In (MDLY)
$4.73 up 0.06 (1.28%)
Volume: 374,494
Voluntary Petition for Reorganization by Medley LLC (3/07/21)
Medley LLC (“Medley LLC”) commenced a voluntary case (the “Chapter 11 Case”) under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). The Chapter 11 Case is captioned In re: Medley LLC, Case No. 21-10526.
The Medley investment platform is comprised of a number of investment advisers and other related entities. Medley LLC is the only entity on the platform that has filed for Chapter 11 protection. Medley Management Inc. (NYSE: MDLY) (“MDLY”) and the other affiliated adviser entities on the Medley platform are not filing any bankruptcy petitions.
Medley LLC will continue to operate its business as “debtor-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. To ensure its ability to continue operating in the ordinary course of business, Medley LLC has filed with the Bankruptcy Court motions seeking a variety of “first day” relief, including authority to continue utilizing and maintaining its existing cash management system.
Business operations across the Medley platform including providing investment and advisory services to its clients are continuing without interruption.
Proposed Plan of Reorganization
In connection with the Chapter 11 Case, Medley LLC filed with the Bankruptcy court a proposed Plan of Reorganization (the “Plan”) and a proposed Disclosure Statement related thereto (the “Disclosure Statement”). Medley LLC intends to seek the Bankruptcy Court’s approval of the Disclosure Statement and confirmation of the Plan. There can be no assurances that Medley LLC will obtain the Bankruptcy Court’s approval of the Disclosure Statement and/or confirmation of the Plan, or that if the Plan is approved, that the reorganization of Medley LLC will be successfully implemented as contemplated by the Plan. This Current Report on Form 8-K is not a solicitation of votes to accept or reject the Plan or an offer to sell or exchange securities of Medley LLC or MDLY. Any solicitation of votes or offer to sell or exchange or solicitation of an offer to buy or exchange any securities of Medley LLC or MDLY will be made only pursuant to and in accordance with the Disclosure Statement following approval by the Bankruptcy Court. Capitalized terms used in this Item 1.03 under this heading titled “Proposed Plan of Reorganization” but not otherwise defined herein shall have the respective meanings given to such terms in the Plan.
Below is a summary of the treatment that the following stakeholders of Medley LLC would receive under the Plan, which is subject to confirmation of the Bankruptcy Court:
Secured Claims. Each holder of an Allowed Secured Claim shall receive, at the option of the Debtor and in its sole discretion: (i) payment in full in Cash of its Allowed Secured Claim; (ii) the collateral securing its Allowed Secured Claim; (iii) Reinstatement of its Allowed Secured Claim; or (iv) such other treatment rendering its Allowed Secured Claim Unimpaired in accordance with section 1124 of the Bankruptcy Code.
Other Priority Claims. Each holder of an Allowed Other Priority Claim shall receive treatment in a manner consistent with section 1129(a)(9) of the Bankruptcy Code.
Notes Claims. On the Effective Date, each holder of an Allowed Notes Claim shall receive: (i) if such holder votes to accept the Plan, 0.600 shares of newly-issued Class A Common Stock of MDLY for each $25 principal amount of 7.25% senior notes due 2024 (“2024 Notes”) and/or 6.875% senior notes due 2026 (“2026 Notes”) held by such holder; (ii) if such holder does not take any action and does not vote on the Plan, 0.450 shares of newly-issued Class A Common Stock of MDLY for each $25 principal amount of 2024 Notes and/or 2026 Notes held by such holder; or (iii) if such holder elects to Opt-Out of the Third Party Release contained in Article VIII of the Plan and/or votes to reject the Plan, the lesser of (x) 0.134 shares of newly-issued Class A Common Stock of MDLY for each $25 principal amount of 2024 Notes and/or 2026 Notes held by such holder or (y) a pro rata share of the Rejecting Noteholder Pool.
Strategic Claim. The holder of the Allowed Strategic Claim shall receive: (i) 218,182 shares of newly-issued Class A Common Stock of MDLY; (ii) $350,000 in Cash on the Effective Date or as soon as practicable thereafter; and (iii) a secured promissory note, the form of which will be negotiated between the parties prior to the Confirmation Hearing, which provides for 10 consecutive quarterly payments of $225,000 in Cash, commencing on the last Business Day of the first full calendar quarter following the Effective Date.
General Unsecured Claims. Each holder of an Allowed General Unsecured Claim shall receive, at the option of the Debtor: (i) the lesser of the amount of its Allowed General Unsecured Claim in Cash, or its pro rata share of the General Unsecured Claims Pool; or (ii) Reinstatement.
Intercompany Claims. Each Allowed Intercompany Claim shall be, at the option of the Debtor, either: (i) Reinstated; or (ii) canceled, released, and extinguished and without any distribution at the Debtor’s election and in its sole discretion.
Interests. Each holder of an Interest shall retain such Interest.
Copies of the Plan and the Disclosure Statement are furnished as Exhibits 99.1 and 99.2 hereto, respectively, and are incorporated herein by reference. The above description of the Plan is a summary only and is qualified in its entirety by reference to the full text of the Plan.
Additional Information on the Chapter 11 Case
Bankruptcy Court filings and other information related to the Chapter 11 Case are available at a website administered by Medley LLC’s noticing and claims agent, Kurtzman Carson Consultants LLC, at https://www.kccllc.net/medley. The documents and other information available via the website or elsewhere are not part of this Current Report on Form 8-K and shall not be deemed incorporated herein.
Item 2.04. Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
The commencement of the Chapter 11 Case constitutes an event of default that accelerates the obligations under the following debt instruments (collectively, the “Debt Instruments”):
7.25% senior notes due 2024 (of which approximately $69 million in aggregate principal amount are outstanding), issued pursuant to that certain Indenture, dated as of August 9, 2016, as supplemented by that certain Third Supplemental Indenture, dated as of January 18, 2017, and that certain Fourth Supplemental Indenture, dated as of February 22, 2017, each between Medley LLC and U.S. Bank National Association, as Trustee, and each as amended, restated, supplemented, or otherwise modified from time to time; and
6.875% senior notes due 2026 (of which approximately $54 million in aggregate principal amount are outstanding), issued pursuant to that certain Indenture, dated as of August 9, 2016, as supplemented by that certain First Supplemental Indenture, dated as of August 9, 2016, and that certain Second Supplemental Indenture, dated as of October 18, 2016, each between Medley LLC and U.S. Bank National Association, as Trustee, and each as amended, restated, supplemented, or otherwise modified from time to time.
Any efforts to enforce payment obligations under the Debt Instruments are automatically stayed as a result of the filing of the Chapter 11 Case and the holders’ rights of enforcement with respect to the Debt Instruments are subject to the applicable provisions of the Bankruptcy Code.
Item 8.01. Other Events.
In connection with the commencement of the Chapter 11 Case, Medley LLC disclosed in its pleadings filed with the Bankruptcy Court certain matters related to MDLY’s and Medley LLC’s business, including the regulatory matter described below:
On September 17, 2019 the staff of the Securities and Exchange Commission’s Division of Enforcement (the “Staff”) informed MDLY that it was conducting an informal inquiry and requested the production and preservation of certain documents and records. MDLY fully cooperated with the Staff’s informal inquiry and began voluntarily providing the Staff with any requested documents.
By letter dated December 18, 2019, the Staff advised MDLY that a formal order of private investigation (the “Order”) had been issued and that the informal inquiry was now a formal investigation. The Order indicated that the investigation relates to Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 thereunder, and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940, Rule 206(4)-8, Sections 13(a) and 14(a) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, 13a-13, and 14a-9 thereunder. MDLY continues to cooperate fully with the investigation.
MDLY cannot predict the outcome of, or the timeframe for, the conclusion of this investigation. An adverse outcome could have a material effect on MDLY’s and Medley LLC’s business, financial condition, or results of operations.
https://www.sec.gov/Archives/edgar/data/1536577/000143774921005208/mdlx20210307_8k.htm
Medlay Management did not pay the quarterly interest on the 6 7/8% debt (MDLX) today, February 16, 2021. The interest also remains unpaid on the 7 1/4% bonds (MDLQ). The company has 30 days to pay interest due MDLQ and MDLX before it is officially in default.
https://www.sec.gov/Archives/edgar/data/1611110/000143774921003006/mman20210216_8k.htm
Peter Kravitz joins the board
https://www.sec.gov/Archives/edgar/data/1611110/000143774921002335/mman20210209_8k.htm
https://www.provincefirm.com/our-team/peter-kravitz/
MDLX bond interest due 2/16/2021
We can expect another 8-K with a non payment notice.
Restructuring is next up.
Senior Unsecured Notes will be the fulcrum security.
Medley Management converts to a C-Corp (1/24/21)
https://www.sec.gov/Archives/edgar/data/1611110/000143774921002335/ex_225382.htm
Medley misses bond payment on 7.25% bonds due February 1, 2021.
https://www.sec.gov/Archives/edgar/data/1611110/000143774921001699/mman20210201_8k.htm
loaded @ $4.90 not .49 ??? either way looks like MDLY is making a late recovery from Covid crisis...
NICE POP. WATCHING BBIG FOR OVER $23 IF NASDAQ DOESN'T MESS UP RUN.
Dino, you in here? First I've run into this one.....
$MDLY some new ownership filings a/h
1) Sandy Point LLC
2) Freedom 2021 LLC
3) Seth Taube
https://www.mdly.com/seth-taube
back at it again...
$MDLY
Nice move in AH; On news!
MDLY is prepping for a huge run in the coming days.
The lowest float big board stock.
Cracking up all day here as I watched the crooked MMs play around for me to sell to them. Loaded this at $0.49 on the demented sell-off. It was $8 prior. So, the rest of my shares will see $8.
Medley Management Inc.
https://www.mdly.com/
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