Centerline Holding Co (fka CLNH)

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Centerline Holding Company Reaches Preliminary Settlement of Claims in Derivative Litigation

Last update: 4/17/2009 7:00:01 AM
NEW YORK, Apr 17, 2009 (BUSINESS WIRE) --

Centerline Holding Company (CLNH) ("Centerline" or the "Company"), the parent company of Centerline Capital Group, a provider of real estate financial and asset management services, today announced it has reached a preliminary settlement of claims in the derivative litigation that has been pending in the United States District Court for the Southern District of New York, Carfagno v. Schnitzer, 08 Civ. 912 (SAS) (S.D.N.Y.). Subject to judicial approval, the parties have agreed that the terms of the convertible preferred stock issued by Centerline to an affiliate of The Related Companies, LP ("TRCLP") in January 2008 would be revised so that the dividend rate payable on the convertible preferred shares issued will be reduced from 11 percent annually to 9.5 percent and the conversion price will be increased from $10.75 to $12.35. In exchange, the Carfagno plaintiffs will release all claims brought against Centerline's officers and directors and TRCLP. A proposed stipulation of settlement was filed with the Court on April 8, 2009 and a fairness hearing for approval of the settlement has been scheduled for May 18, 2009 at 5:00 p.m. in the courtroom of U.S. District Judge Shira Sheindlin at 500 Pearl Street, New York, NY 10007. The Carfagno settlement is also contingent upon the dismissal with prejudice of the overlapping Off and Ciszerk actions pending before the Delaware Court of Chancery. Individuals may review the settlement stipulation on the Centerline website investor relations page.