The Board of Trustees of The Reserve Primary Fund (the “Primary Fund”) announced that the United States District Court for the Southern District of New York has issued an Order (the “Order”) on an application made by the U.S. Securities and Exchange Commission (the “Commission”) concerning the distribution of the Primary Fund’s remaining assets.
The Commission’s application proposes a plan to distribute the remaining assets of the Primary Fund on a pro rata basis to shareholders of the Primary Fund whose shares have not been fully redeemed since September 15, 2008. The Commission also seeks an order enjoining certain claims against the Primary Fund and other parties named as defendants in litigation involving the Primary Fund. The terms of the Commission’s proposed plan are contained in a “Term Sheet” attached as an Appendix to the Court’s Order.
Pursuant to a plan of distribution adopted by the Trustees on December 3, 2008, shareholders have to date received approximately 90 percent of their assets in the Fund.
As set forth in the Order, any person who objects to the Commission’s proposed relief and plan of distribution must file a statement of objection with the Court byJuly 22, 2009. Details about the filing of objections and upon whom such objections should be served are contained in the Order. Shareholders who do not object to the Commission’s application do not need to file any papers with the Court.
The Court will hold a hearing at 9:30 a.m. on September 23, 2009 in Courtroom 18B of the United States Courthouse, 500 Pearl Street, New York, New York on whether it will grant the Commission’s application and approve the proposed pro rata plan of distribution sought by the Commission and other aspects of the Term Sheet.
By June 22, 2009, the Primary Fund will mail copies of the Order and the Term Sheet to all owners of record for unredeemed shares in the Fund as of September 15, 16, 17 or 18, 2008. In addition, the Order, the Term Sheet and the Commission’s Memorandum of Law in Support of Its Proposed Order to Show Cause and Application for Injunctive or Other Relief are available on the Commission’s website, http://www.sec.gov/spotlight/reserve_primary_fund_investors.htm, and the Reserve’s website, www.ther.com/reservenewslist.shtml.
Contacts:
Rubenstein Associates
Josh Hamilton, 212-843-8304
jhamilton@rubenstein.com
OR
Charles
Zehren, 212-843-8590
czehren@rubenstein.com