NEW YORK, June 1, 2021 /PRNewswire/ -- Medley LLC
(NYSE: MDLX, MDLQ) ("Medley LLC" or the "Company") today announced
that it received a notice from the New York Stock Exchange (the
"NYSE") indicating that Medley LLC is not in compliance with
Section 802.01E of the NYSE Listed Company Manual as a result of
its failure to timely file its Quarterly Report on Form 10-Q for
the quarter ended March 31, 2021 (the
"Form 10-Q") with the Securities and Exchange Commission (the
"SEC"). The notice has no immediate effect on the listing of Medley
LLC's notes on the NYSE.
The NYSE informed Medley LLC that, under the NYSE's rules,
Medley LLC can regain compliance with Section 802.01E of the NYSE
listing requirements by filing the Form 10-Q with the SEC at any
time prior to November 24, 2021. If
Medley LLC fails to file the Form 10-Q by that date, the NYSE may
grant, in its sole discretion, a further extension of up to six
additional months for Medley LLC to regain compliance, depending on
the specific circumstances. The NYSE notice indicates that NYSE may
commence delisting proceedings at any time during the period that
is available to complete the filing, if circumstances warrant.
As Medley LLC reported in its Form 12b-25 filed with the SEC on
May 17, 2021, the Form 10-Q was
delayed because of significant demands associated with Medley LLC's
Chapter 11 case (the "Medley LLC Chapter 11 Case") and significant
work in connection with the deconsolidation of Medley LLC's
financial statements from those of its historic parent Medley
Management Inc. ("MDLY") as of the petition date of the Medley LLC
Chapter 11 Case.
Although Medley LLC plans to file the Form 10-Q as soon as
possible after completion and finalization of Form 10-Q financial
statements and disclosures and completion of review processes,
Medley LLC is unable to predict a specific filing date at this
time. The Company continues to work diligently to complete and
finalize the 10-Q and intends to file the Form 10-Q as soon as
practicable.
About Medley
Medley is an alternative asset management firm offering yield
solutions to retail and institutional investors. Medley
has $1.9 billion of assets under management in one
business development company, Sierra Income Corporation, and
several private investment vehicles. Over the past 19 years,
Medley has provided capital to over 450 companies across 35
industries in North America. (1)
Medley LLC is the operating company of Medley Management
Inc.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
and such statements are intended to be covered by the safe harbor
provided by the same. These statements are based on the current
beliefs and expectations of Medley LLC's management and are subject
to significant risks and uncertainties. The above statements
regarding Medley LLC's plans associated with the Form 10-Q
including completion of work associated therewith, the timing
thereof, and the timing of the filing of the Form 10-Q, and other
statements containing the words "believes," "anticipates," "plans,"
"expects," "will" and similar expressions, constitute
forward-looking statements that are based on Medley's current
expectations. Because these forward-looking statements involve
risks and uncertainties, there are important factors that could
cause Medley's actual results, as well as
Medley's expectations regarding materiality or significance,
to differ materially from those in the forward-looking statements..
These factors include, but are not limited to, the following: (i)
the outcome of the formal review process being undertaken by Sierra
Income Corporation ("Sierra") to evaluate strategic alternatives
for Sierra, and whether Sierra's review process results in a
termination of Medley's advisory agreement with Sierra, which event
would have a significant and material adverse effect on Medley's
business and prospects in which case we believe that Medley would
likely not be able to continue operations; (ii) the outcome of the
Medley LLC Chapter 11 Case and Medley LLC's ability to successfully
reorganize and emerge from bankruptcy protection; (iii) Medley
LLC's ability to develop and propose an amended Chapter 11 Plan of
Reorganization of Medley LLC ("Plan"), successfully attain
Bankruptcy Court confirmation of any such amended Plan that Medley
LLC may propose, and thereafter successfully consummate and
implement such Plan in accordance with the terms thereof; as
previously reported in our Current Report on Form 8-K filed on
May 13, 2021, pursuant to filings
with the Bankruptcy Court, on May 13,
2021, Medley LLC withdrew its original Plan and Disclosure
Statement; Medley LLC has to date been unable to successfully
develop an amended Plan and an amended Disclosure Statement; (iv)
since the commencement of Medley LLC's Chapter 11 proceedings we
have experienced and may continue to experience certain adverse
effects on our business, including employee attrition, client
attrition and a reduction in assets under management; (v) whether
the Bankruptcy Court will confirm any amended plan of
reorganization that Medley LLC may develop and propose (there being
the risk that any amended plan of reorganization that Medley LLC
may propose may never be confirmed by the Bankruptcy Court or
become effective); (vi) additional risks related to the Medley LLC
Chapter 11 Case and any reorganization in connection therewith,
including, but not limited to, risks associated with any
reorganization that Medley LLC may pursue (including but not
limited to risks associated with potential changes to our capital
structure), the Bankruptcy Court may grant or deny motions in a
manner adverse to Medley LLC, claims that may not be discharged in
the Medley LLC Chapter 11 Case, adverse publicity in connection
with Medley LLC's bankruptcy petition, the impact of the Medley LLC
Chapter 11 Case on our overall future financial performance, and
risks related to trading in our securities during the pendency of
the Medley LLC Chapter 11 Case; (vii) in the event Medley LLC is
unable to successfully develop an amended Plan, or any such Plan
that Medley LLC proposes fails to attain confirmation of the
Bankruptcy Court, Medley LLC may have no suitable alternatives
reasonably available to it other than a liquidation under Chapter
11 of the Bankruptcy Code, or to convert the Medley LLC Chapter 11
Case into a liquidation case under Chapter 7 of the Bankruptcy
Code, in which event a Chapter 7 trustee would be appointed to
liquidate Medley LLC's assets for distribution in accordance with
the priorities established by the Bankruptcy Code; (viii) our
ability to continue as a going concern; (ix) the outcome of, the
timeframe for, and the ultimate resolution of the matters raised by
the Wells Notices received by MDLY, Medley LLC and certain pre-IPO
owners of Medley LLC, including whether any enforcement action will
be brought and the full extent of the potential implications
thereof; any adverse outcome in connection therewith could have a
material effect on our business, financial condition, or results of
operations; (x) difficult market and political conditions; (xi) our
success in retaining or recruiting, or changes required in, our
officers, key employees or directors; (xii) our ability to
successfully compete for and retain fund investors, assets,
professional talent and investment opportunities; (xiii) our
ability to successfully formulate and execute our business,
investment and growth strategies; (xiv) our financial performance;
(xv) our ability to consummate or successfully integrate
development opportunities, acquisitions or joint ventures; (xvi)
our ability to manage conflicts of interest; (xvii) our assumptions
relating to our operations, investment performance, financial
results, financial condition, business prospects, growth strategy
and liquidity; (xviii) the uncertain effect of COVID-19 or other
future pandemics or events on our business, operating results and
financial condition, including disruption to our customers, our
employees, the global economy and financial markets; (xix), our
ability to regain and maintain compliance with NYSE continued
listing requirements and our ability to maintain our NYSE listing,
and (xx) any further delays associated with the completion and
filing of the Form 10-Q, as to which we are unable to provide a
specific filing date at this time.
All forward-looking statements made herein speak only as of the
date of this press release. Except as required by law, Medley LLC
undertakes no obligation to update the forward-looking statements
to reflect the impact of circumstances or events that may arise
after the date of the forward-looking statements. For a discussion
of a variety of risk factors affecting Medley LLC's business and
prospects, see "Risk Factors" in Medley LLC's annual and quarterly
reports filed with the SEC including, but not limited to, its
Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which has been filed with the
SEC and is available on our website (www.mdly.com) and on the SEC's
website (www.sec.gov).
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(1)
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Medley Management
Inc. is the parent company of Medley LLC and several registered
investment advisors (collectively, "Medley"). Assets under
management refers to assets of our funds, which represents the sum
of the net asset value of such funds, the drawn and undrawn debt
(at the fund level, including amounts subject to restrictions) and
uncalled committed capital (including commitments to funds that
have yet to commence their investment periods). Assets under
management are as of March 31, 2021, adjusted to reflect subsequent
events that resulted in the reduction in certain undrawn
commitments that are no longer available to be drawn.
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CONTACT:
Medley LLC
212-759-0777
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SOURCE Medley LLC