Holdings in 1848 Capital Partners, Big Apple Entertainment Partners, and London Bridge
Entertainment Partners Sold to Investment Group
HOUSTON, TX – February 1, 2011 – 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.
"We are pleased to conclude this transaction, particularly in light of the recent performance of
these investments," said John Hardy, Executive Chairman of Equus. "We are extremely
appreciative of the principals of 1848 and their diligent efforts to work with us to achieve this
end."
About Equus
The Fund is a business development company that trades as a closed-end fund on the New York Stock Exchange, under the symbol "EQS".
Additional information on the Fund may be obtained from the Fund's website at www.equuscap.com.
This press release may contain certain forward-looking statements regarding future circumstances. These forwardlooking
statements are based upon the Fund's current expectations and assumptions and are subject to various
risks and uncertainties that could cause actual results to differ materially from those contemplated in such forwardlooking
statements including, in particular, the risks and uncertainties described in the Fund's filings with the SEC.
Actual results, events, and performance may differ. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as to the date hereof. The Fund undertakes no obligation to release
publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this
release does not constitute an admission by the Fund or any other person that the events or circumstances
described in such statements are material. |
