the war is on! :) Beck Street Capital Proposes Strategic Restructuring of Realty Finance Corporation and Comments on JAC Proposal
ShareretweetEmailPrintCompanies:Realty Finance Corporation Topics:Earnings Related Quotes Symbol Price Change RTYFZ.PK 0.1200 0.0000
{"s" : "rtyfz.pk","k" : "a00,a50,b00,b60,c10,g00,h00,l10,p20,t10,v00","o" : "","j" : ""} Press Release Source: Beck Street Capital On Thursday October 28, 2010, 9:00 am EDT NEW YORK, Oct. 28 /PRNewswire/ -- Beck Street Capital, a private New York City-based real estate investment firm, has issued a proposal for the restructuring of Realty Finance Corporation (Pink Sheets:RTYFZ.pk - News) and comments below on the JAC Proposal.
Regarding the Beck Street Capital Proposal
Today, Beck Street Capital delivered a proposal for the restructuring of Realty Finance Corporation (the "Company") to its Board of Directors. The primary points of the Beck Street Capital proposal include an immediate cash distribution of Realty Finance Corporation's remaining cash balances to the stockholders, estimated at $0.07 per share; or, for those stockholders desiring to immediately tender their shares and exit the stock, the implementation of a stock buyback at a price of $0.14 per share for up to 50% of the shares outstanding. Beck Street Capital will commit to invest the capital required to complete the stock buyback. Additional terms include the commencement of a rights offering to all Company stockholders as soon as is practicable following the close of the proposed transaction including a commitment by Beck Street Capital to invest up to $5.0 million and the adoption of a strategic growth plan. The Company will once again become a reporting company under the Securities and Exchange Act of 1934.
Regarding the JAC Investment Corp. Proposal
On October 26, 2010, after the close of trading, the Board of Directors of Realty Finance Corporation announced that they had entered into a non-binding term sheet for JAC Investment Corp. to tender for all of the Company's shares for a purchase price of $0.11 per share. It is Beck Street Capital's view that this proposal fails to adequately maximize value to the stockholders that would result from any other alternative facing the Company, including the Beck Street Capital proposal, an orderly liquidation, or a bankruptcy. According to Realty Finance Corporation's most recent disclosed financial statements, issued on May 24, 2010, it had approximately $3.8 million of unrestricted cash as of December 31, 2009. After reductions in this cash balance for the costs associated with the early termination of its lease, and insurance costs resulting from its shareholder litigation, the Company has indicated it had approximately $3.0 million, or $0.10 per share, in cash as of May 24, 2010. The JAC proposal seems to suggest that the Company's cash balances have been further reduced to $2.2 million, or $0.07 per share.
News 
Market Data 
Discover 
