- Current report filing (8-K)
May 18 2009 - 9:00AM
Edgar (US Regulatory)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 13, 2009
Highland Distressed Opportunities, Inc.
(Exact Name of Registrant as Specified in Charter)
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Delaware
(State or Jurisdiction of
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814-00729
(Commission File Number)
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205423854
(IRS Employer
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Incorporation or Organization)
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Identification No.)
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NexBank Tower
13455 Noel Road, Suite 800
Dallas, Texas 75240
(Address of Principal Executive Offices)
(877) 247-1888
(Registrants Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR
240.13e-4(c))
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ITEM 1.02 Termination of a Material Definitive Agreement.
On May 13, 2009, the Registrant repaid in full, terminated and satisfied and discharged all other
obligations under the Revolving Credit and Security Agreement (the Credit Agreement) with Liberty
Street Funding LLC, as conduit lender, and The Bank of Nova Scotia, acting through its New York
agency, as secondary lender and agent.
As disclosed in more detail in the Registrants most recent Form 10-Q filing, under the Credit
Agreement, the Registrant was permitted to borrow on a revolving basis up to $10 million, subject
to the satisfaction of certain conditions including compliance with a borrowing base test and asset
coverage limits. The Credit Agreement imposed stricter limitations than the Investment Company Act
of 1940, as amended, requiring generally that asset coverage be at least 300% after a borrowing.
The Registrant paid a commitment fee at the annual rate of 1.25% on the total commitment amount,
and a utilization fee at the annual rate of 0.75% on outstanding borrowings. The Credit Agreement
was secured by substantially all of the assets in the Registrants portfolio, including cash and
cash equivalents. The Credit Agreement was scheduled to have matured on May 29, 2009. The
Registrant, after considering the commitment fees paid under the Credit Agreement, determined that
it would be beneficial to terminate the Credit Agreement in advance of the May 29, 2009 maturity
date.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Company
has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned
hereunto duly authorized.
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Highland Distressed Opportunities, Inc.
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Date: May 18, 2009
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By:
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/s/ James D. Dondero
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Name:
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James D. Dondero
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President (Principal Executive Officer)
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