Burnham sold the properties, known as the Golden State portfolio, to Weingarten Realty Investors in a transaction announced last month. The company currently expects to close the Weingarten transaction this month and make the distribution in April, following the purchase of all the company's common shares.
Closure of the deal will bring the total amount of liquidating distributions made to the common stockholders under the company's liquidation plan announced last year to 20 cents per share. Burnham stockholders on Dec.15 approved the liquidation following a year of financial turmoil.
In a release, Burnham pointed out that there could be no assurance, however, that the company will close the Weingarten transaction.
The company on Friday also announced its anticipated policy for making future distributions. Burnham expects to make one liquidating distribution per quarter to its common stockholders out of the then-available cash (after payment of debt). However, no distribution would be made unless the amount of such distribution would equal at least 25 cents per share, according to company officials.
"The expected closing of the sale of the Golden State portfolio is another positive step in furtherance of our plan of liquidation," says Scott C. Verges, the company's president/CEO. "The sale will enable the company to repurchase all of the company's preferred stock and substantially reduce indebtedness."
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