Eagle Growth and Income Opportunities Fund Provides Update on Status of Liquidation
I just reviewed the latest press release on EGIF see link above.
If the facts of the release are correct the Independent board is the good in that they were really looking out for their shareholders.
The bad: the previous manager if the allegations are correct. The ugly, the legal battle holding up the distribution of assets of the fund.
For one month the reported NAV XEGIX was 13.93 every day as all the assets were liquidated and the proceeds were held in a money market fund. At the end of last week, the NAV dropped 1% to $13.78. This may only be the best guesstimate given the new information.
I’m not sure what the reserve should be for a potential legal defense expense and the potential liability to Four Wood. If anyone knows the dollar amount of Four Woods lawsuit, it would be helpful. Please post it on this thread.
With all the legal battles and proxy fights recently it seems the CEF space is a sport.
A little off-topic: But I just heard the news that Ennio Morricone the composer of The Good, the Bad, and the Ugly passed away today 7/6/2020 at age 91. This is one of the best movie soundtracks ever.
The Board has determined that $29 million of the Fund's net assets should be reserved by the Fund and not immediately distributed. This is roughly 30% of market cap.
"Consistent with the Fund's previously-announced liquidation plans, the Fund's shares ceased trading on the New York Stock Exchange before the open of trading on July 28, 2020. In addition, on August 3, 2020, the Fund distributed to shareholders of record as of the close of business on July 27, 2020 $8.75 per share in a cash liquidating distribution. This represents a return to shareholders of 63.5% of the Fund's net asset value per share as of July 31, 2020"