Managed High Yield Plus Fund Inc. Announces Update on Liquidation & Cessation of Monthly Dividend Pending Final Liquidating D...
May 09 2016 - 5:05PM
Business Wire
Managed High Yield Plus Fund Inc. (the "Fund") (NYSE:HYF), a
closed-end management investment company, today announced that it
has successfully de-leveraged and fully paid back the bank line of
credit that had been used to leverage its investment portfolio. The
Fund continues to make significant progress converting remaining
portfolio securities to cash or cash equivalents, and determining
and paying (or setting aside) the amount of all known or reasonably
ascertainable claims and obligations of the Fund in connection with
the Fund's liquidation which was approved by its shareholders last
month.
The Fund has had a past practice of declaring and paying monthly
dividends from that month's net investment income. As the Fund has
de-leveraged and is in the process of liquidating its assets, it is
not projecting receipt of sufficient net investment income during
May to make a regular monthly distribution. In addition, certain
tax complexities could arise, such as an increased probability that
all or a portion of any such distribution might constitute a return
of capital, if the Fund were to make a May dividend payment. As a
result, the Fund will not be making a regular monthly dividend
payment from net investment income in May. Instead, any net
investment income earned in May will be included as part of the
final liquidating distribution to shareholders. The payment date of
the final liquidating distribution to shareholders will be
announced in a future press release but is likely to be no later
than June 29, 2016.
As previously communicated in an April 27, 2016, press release,
pursuant to the Plan of Liquidation, the Board of Directors of the
Fund has established a “Cessation Date” of June 22, 2016, on which
the books of the Fund will be closed with respect to shareholders.
Effective the business day following the Cessation Date, the Fund’s
common shares will not be transferable, and it is anticipated that
trading in Fund shares on the New York Stock Exchange will cease.
The Cessation Date may be extended if necessary or appropriate in
connection with the orderly liquidation of the Fund or to protect
the interests of Fund shareholders. All shareholders as of the
close of business on the Cessation Date are entitled to receive a
liquidating distribution. Additional details regarding the
liquidation will be provided by a separate communication closer to
the distribution date.
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