ARLINGTON, Va. and NEW YORK, April 28 /PRNewswire-FirstCall/ -- MCG Capital Corporation (Nasdaq: MCGC) ('MCG' or the 'Company') and a shareholder group comprised of Springbok Capital Management, LLC, Soundpost Partners, LP and Lyrical Partners, L.P. (the 'Shareholder Group'), which beneficially owns approximately 9.9% of the Company's outstanding shares, today announced that they have entered into an agreement in connection with the Company's 2009 Annual Meeting of Stockholders.
Under the terms of the agreement, the Company will appoint Gavin Saitowitz, a Managing Member of Springbok Capital Management, to the Company's Board of Directors, effective April 30, 2009, and nominate him at the 2009 Annual Meeting to serve as a member of the Company's Board of Directors until the 2012 annual meeting of stockholders. The Company also intends to nominate current MCG directors, A. Hugh Ewing, III and Kenneth J. O'Keefe, at the 2009 Annual Meeting to serve as members of the Company's Board of Directors until the 2012 annual meeting of stockholders. The Company's Board of Directors will initially be comprised of nine directors and will be reduced to eight directors prior to August 31, 2009. Jeffrey M. Bucher, a current MCG director, resigned from the Board effective as of April 30, 2009. In connection with the nomination of Mr. Saitowitz, the Shareholder Group has agreed not to solicit proxies in connection with the 2009 Annual Meeting of Stockholders and to vote its shares in support of all of the Board's director nominees and the Company's proposals at the 2009 Annual Meeting of Stockholders.
As part of the settlement agreement, all pending litigation between MCG and the Shareholder Group will be dismissed. In addition, the Shareholder Group has agreed to a broad standstill extending through the date of the Company's 2010 annual meeting of stockholders.
'We are pleased that this matter has been resolved in a manner that we believe serves the best interests of the Company and all MCG stockholders,' said Richard W. Neu, MCG's Chairman of the Board. 'This agreement will enable MCG to avoid a costly and disruptive proxy contest during a critical time as we focus on creating stockholder value in a challenging and unprecedented environment. We will welcome Gavin Saitowitz to the Board and look forward to working together to execute our plan to create value for all MCG stockholders.'
Mr. Neu added, 'On behalf of MCG's Board and management team, I want to thank Jeff Bucher for his years of service as a director of MCG.
