This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Equus Sells Three Related Investments For Ten Million In Cash

Equus Total Return, Inc. (NYSE: EQS) (“Equus” or the “Fund”) today announced that its promissory notes from 1848 Capital Partners, LLC (“1848”), Big Apple Entertainment Partners, LLC (“Big Apple”), and London Bridge Entertainment Partners, LLC (“London Bridge”), have been sold in exchange for $10 million in cash to an undisclosed investment group. As part of the transaction, $200,000 of the purchase price was allocated to Riptide Entertainment, LLC (“Riptide”).

In previous periods, the operating results of each of these companies had declined, and collectibility of the notes was therefore called into question, the result of which was the decline in valuation of these investments. As of September 30, 2010, the last date on which the Fund’s net asset value was calculated, the Fund’s holdings were valued at $299,163 for 1848, $2,283,245 for Big Apple, $807,379 for London Bridge; and zero for Riptide, for a collective total of $3,389,787.

All of the notes in question were unsecured with senior liquidity rights and each had personal guarantees from the principals of the respective underlying companies. As previously disclosed in the Fund’s quarterly report on Form 10-Q for the three-month period ended September 30, 2010, the notes from London Bridge and Big Apple were in default. The Fund had accelerated the maturity of the London Bridge note, and made demand for payment of both London Bridge and Big Apple. In addition, the note from 1848 had also matured and was due in full.

Riptide is a holding company controlled by the Fund that owned various equity, debt and other economic interests in Big Apple, London Bridge and DCAB Entertainment Partners, LLC and various entities related to these companies. As part of the transaction, the buyer required that all of the holdings of Riptide be transferred to the buyer or be terminated. As a result, Riptide was allocated approximately $200,000 cash from the transaction, which was sufficient to satisfy its outstanding liabilities.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs