NEW YORK, June 1, 2021 /PRNewswire/ -- Medley
Management Inc. (NYSE: MDLY) ("MDLY" or the "Company") today
announced that it received a notice from the New York Stock
Exchange (the "NYSE") indicating that MDLY 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 MDLY's
Class A Common Stock on the NYSE.
The NYSE informed MDLY that, under the NYSE's rules, MDLY 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 MDLY 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
MDLY 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 MDLY reported in its Form 12b-25 filed with the SEC on
May 17, 2021, the Form 10-Q was
delayed because of the complexity of the accounting treatment
related to the deconsolidation of MDLY's heretofore consolidated
subsidiary Medley LLC from MDLY's financial statements as of the
petition date of Medley LLC's Chapter 11 case (the "Medley LLC
Chapter 11 Case"), the significant work required to effect the
deconsolidation and other significant demands associated with the
Medley LLC Chapter 11 Case.
Although MDLY 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, MDLY 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 MDLY's management and are subject to
significant risks and uncertainties. The above statements regarding
MDLY'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, MDLY
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 MDLY's business and
prospects, see "Risk Factors" in MDLY'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 MDLY's 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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Medley Management Inc.
Investor Contact
212-759-0777
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SOURCE Medley Management Inc.
