Saba Capital reaches agreement with Citadel Income Fund

Goodmans LLP acted for Saba Capital Management, L.P. in relation to its agreement with Citadel Income Fund and its manager, Artemis Investment Management Limited following a protracted dispute involving the requisition of a meeting of unitholders made for the purpose of replacing the fund manager and winding down the fund. In the end, the parties settled. 

Under the terms of the agreement, the fund will commence an offer to redeem for cash, on a pro rata basis from all unitholders of the fund who tender all or a portion of their fund units to such redemption offer, not less than 7.2 million units at an amount per unit equal to the net asset value less redemption costs equal to 4.5% of NAV.

In exchange for the redemption offer, Saba agreed to withdraw its requisitions previously submitted to the fund and to customary releases and standstill provisions. The agreement also contains restrictions on the ability of Citadel to take certain actions during the 12-month standstill period and an expense reimbursement provision.