Recovery of Investment Losses in Corporate Capital Trust
Concerned about investment losses in Corporate Capital Trust? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
Corporate Capital Trust is a non-traded business development company (BDC) that provides individuals an opportunity to invest in the debt of privately owned American companies.
Corporate Capital Trust Update
On Jan. 17, 2017, the Corporate Capital Trust filed a tender offer statement with the Securities and Exchange Commission offering to repurchase up to approximately 7.6 million shares of common stock at a cash price of $9.00 per share. At the termination of the tender offer the Company had repurchased 3.71 million shares of common stock for an aggregate purchase price of $33.38 million.
On Jan. 27, 2017, the Corporate Capital Trust’s board of directors declared distributions of $0.015483 per share for four record dates between Feb. 7, 2017, and Feb. 28, 2017. On Feb. 24, 2017, the Company’s board of directors declared distributions of $0.015483 per share for four record dates between March 7, 2017, and March 28, 2017. On March 16, 2017, the Company’s board of directors declared distributions of $0.015483 per share for four record dates between April 4, 2017, and April 25, 2017.
Net asset value (NAV) per share as of Dec. 31, 2016, was $8.93 per share.
Secondary Market Offer in March 2017
According to Central Trade & Transfer, a secondary market website, shares of Corporate Capital Trust have recently sold for just $7.76 per share. Unfortunately for many investors, it appears that the secondary market price would represent a significant loss on their initial capital investment.
Risks of BDCs
Business Development Companies operate much in the same was as REITs (Real Estate Investment Trusts) with non-traded BDCs having many of the same problems for investors as non-traded REITs – like high-risk, high commissions, and lack of liquidity.
The White Law Group has represented a number of investors over the last few years in non-traded REITs as well as BDCs. The firm continues to investigate the liability that brokerage firms may have for recommending high-risk BDCs, like Corporate Capital Trust.
Brokerage firms are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor in light of that particular investor’s age, investment experience, net worth, risk tolerance, investment objectives, and income. Firms that fail to perform adequate due diligence or that make unsuitable recommendations can be held responsible for investment losses in a FINRA arbitration claim.
If you suffered losses investing in a Corporate Capital Trust or another BDC and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. The firm represents investors in FINRA arbitration claims throughout the country. For more information on the firm, visit https://www.whitesecuritieslaw.com.