Medley Management Inc. (MDLM)

[db7]

“ The most significant of the Remaining Company Contracts are the Sierra IAA and the Administration Agreement between Sierra and Medley Capital. On May 27, 2021, Sierra publicly announced that it was exploring its strategic alternatives with respect to the Sierra IAA. Based on that announcement, the Debtor, Medley Capital and Sierra anticipate that the Sierra IAA will be transitioned to a new manager and terminate at the end of 2021 or early 2022. Under the Sierra IAA, the Sierra board of directors could terminate on 60 days’ notice or on an expedited timeline,
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if Medley Capital and SIC Advisors were unable to continue to continue to perform under the Sierra IAA. In either case, loss of the Sierra IAA would result in a material loss of net proceeds to be distributed to the Debtor and a reduction in recoveries to Allowed Claims.
Notwithstanding Sierra’s ability to terminate the Sierra IAA early, Sierra has determined to have Medley Capital and SIC Advisors continue to provide advisory and administrative services until Sierra is able to transition to a new manager, which is likely to occur sometime between December 31, 2021 and March 31, 2022.




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