Toronto-based Covington Capital Corp. has announced that its board of directors has approved the re-opening of Covington Fund II Inc. on May 7 to allow for the redemption of approximately $10 million by Class A shareholders.
The $10 million in cash proceeds has been generated by Covington as it continues the process of selling portfolio holdings to meet the contemplated redemption requirement of 20% — or approximately $18 million — of the net asset value of the fund as of the most recent fiscal yearend and as set out in both the governing legislation and the fund’s prospectus disclosure.
As the fund continues the wind up process, there are several portfolio companies pursuing sale negotiations. Proceeds may enable an additional re-opening of the fund to complete further redemptions prior to the fund’s yearend of Aug. 31.
The fund will process redemption trade instructions received on a first come, first serve basis beginning on May 7. Redemption requests will be accepted until the fund has received redemption requests totalling the redemption limit.