Business & Finance
Business and Finance
Business and Finance
Tue, November 25, 2008
Mon, November 24, 2008 PAULA Financial Declares Third Liquidating Distribution
PASADENA, Calif.--([ BUSINESS WIRE ])--PAULA Financial (Pink Sheets:PFCO) today announced that the Board of Directors has declared an additional liquidating distribution in the amount of $0.09 per common share. The distribution will be paid to holders of record as of December 1, 2008 and will be paid on December 15, 2008.
This will be the third liquidating distribution paid by the Company since it sold its sole operating business in February 2008 for $50,000,000 or $6.86 per common share. An initial liquidating distribution of $3.89 per common share was completed in March 2008 followed by another $1.52 in September 2008. The current liquidating distribution combined with the earlier ones totals $5.50 per common share and represents 80% of proceeds from the transaction.
The Company's remaining cash reserves are held for potential indemnification commitments as well as to provide for contingent and unknown claims which may or may not arise during the winding up of the Company. Future cash distributions to PFCO stockholders, if any, cannot be determined by the Board at this time.
The Company also reported that the third release of funds held in escrow related to the asset sale was received earlier today. The final scheduled escrow release date is February 22, 2009.
Additionally, the Company has posted its reviewed financial statements for the nine months ended September 30, 2008 on its website, [ www.pfco.cc ]. The Board intends to continue to post financial and other updates from time to time on the website.
The Company cautions readers to recognize the existence of certain forward-looking statements in this press release and in any other statement made by, or on behalf of, the Company. The Company disclaims any obligation to update forward-looking information. Determining tax consequences of distributions can be complicated. Eligible stockholders should consult their own tax advisor. The state tax treatment for this distribution may vary from the federal and may vary from state to state. Stockholders are strongly advised to consult their own tax advisers for the appropriate tax treatment in their state of residency.
