Medley Management (NYSE:MDLY) Suspends Trading, Medley LLC Files Chapter 11 Bankruptcy | Recover Investment Losses
Goodman & Nekvasil, P.A., has filed hundreds of cases against brokerage firms selling high-risk investments such as Medley Management (MDLY) and has recovered over $200 million dollars on behalf of victimized investors. We allege in these cases that these investment recommendations were unsuitable for our clients in view of their financial situation, needs and investment objectives. All our cases are handled on a purely contingency fee basis.
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.
Medley LLC is the operating company of Medley Management Inc.
Sierra is a non-traded business development company that invests primarily in first lien senior secured debt, second lien secured debt and, to a lesser extent, subordinated debt of middle market companies.
In 2019 Medley Management Inc. had plans to merge with Sierra Income Corp. and Medley Capital Corporation (MCC), but last May, Sierra announced that its Board of Directors terminated the merger plans.
Sierra noted that changes were due to the relative valuations of the Company, MCC, and MDLY, and the “unpredictable economic conditions resulting from the global health crisis caused by the coronavirus (COVID-19) pandemic, and the uncertainty regarding the parties’ ability to satisfy the conditions to closing in a timely manner,” according to a press release.
Medley Noteholders will reportedly come after holders of secured claims and other priority claims in the list for Medley LLC assets. According to court documents, “each holder of an allowed notes claim will get a pro rata share of the unsecured claims pool which consists of all of the Liquidating Trust Assets after payments of allowed secured claims, allowed administrative expenses, allowed priority claims, and Liquidating Trust expenses.”
Goodman & Nekvasil, P.A. May Recover Investment Losses on Medley Management
You may have the right to recover your losses from the brokerage firm that sold Medley Management (MDLY) and other high-risk investments to you. We strongly recommend that you act quickly, however, because statutes of limitation can be short in securities cases.
If you incurred losses on your investment in Medley Management (MDLY) and/or other high-risk investments and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.