Board Size Reduced to Eight Members
MCG Capital Corporation (NASDAQ: MCGC) (the “Company”) announced today
that, on June 17, 2009, Robert J. Merrick tendered his resignation from
the MCG board of directors effective immediately. As part of this
change, Mr. Merrick will also leave his position as the Company’s
Executive Vice President and Chief Investment Officer. Under the terms
of his employment agreement, his departure will be treated as a
termination without cause.
On April 24, 2009, Springbok Capital Management, LLC, Springbok Capital
Onshore, LLC, Gavin Saitowitz, Soundpost Partners, LP, Jaime Lester,
Lyrical Partners, L.P., Jeffrey Keswin, Robert S. Everett and Edward
Gage, or the Springbok Group, and the Company entered into an agreement
to settle matters pertaining to the contested election of directors to
the MCG board at the Company’s 2009 Annual Meeting of Stockholders.
Under the terms of the settlement agreement with the Springbok Group,
the Company agreed to reduce the size of the board from nine directors
to eight directors prior to August 31, 2009. After giving effect to Mr.
Merrick’s resignation, the Company’s board consists of eight directors.
“I would like to extend my appreciation to Bob for his dedication to MCG
over the years,” said Richard W. Neu, Chairman of the MCG board. “He has
made significant contributions during his tenure at MCG that has spanned
over a decade.”
“I would also like to thank Bob for his service to the Company,” said
MCG’s President and Chief Executive Officer, Steven F. Tunney. “As a
founding member of MCG, Bob’s experience and knowledge have been
invaluable to the Company. I wish Bob all the best and appreciate all he
has done for me and the team at MCG.”
About MCG Capital Corporation
MCG Capital Corporation is a solutions-focused commercial finance
company providing capital and advisory services to middle market
companies throughout the United States. Our investment objective is to
achieve current income and capital gains. Our capital is generally used
by our portfolio companies to finance acquisitions, recapitalizations,
buyouts, organic growth and working capital. For more information,
please visit www.mcgcapital.com.
Forward-looking Statements:
Statements in this press release regarding management’s future
expectations, beliefs, intentions, goals, strategies, plans or
prospects, may constitute forward-looking statements for purposes of the
safe harbor protection under applicable securities laws. Forward-looking
statements can be identified by terminology such as “anticipate,”
“believe,” “could,” “could increase the likelihood,” “estimate,”
“expect,” “intend,” “is planned,” “may,” “should,” “will,” “will
enable,” “would be expected,” “look forward,” “may provide,” “would” or
similar terms, variations of such terms or the negative of those terms.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors including those risks, uncertainties and
factors referred to in MCG’s Quarterly Report on Form 10-Q for the
quarter ended March 31, 2009 filed with the Securities and Exchange
Commission under the section “Risk Factors,” as well as other documents
that may be filed by MCG from time to time with the Securities and
Exchange Commission. As a result of such risks, uncertainties and
factors, actual results may differ materially from any future results,
performance or achievements discussed in or implied by the
forward-looking statements contained herein. MCG is providing the
information in this press release as of this date and assumes no
obligations to update the information included in this press release or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
MCG Capital Corporation
Marshall Murphy, 703-562-7110
MMurphy@MCGCapital.com
