Equus Total Return Takes Action to Protect
Investment in Subsidiary Founded by Paula
Douglass
Cites Poor Performance of Equus Media Development Company Under Douglass
April 28, 2010 06:04 PM Eastern Daylight Time
HOUSTON--(EON: Enhanced Online News)--Equus Total Return, Inc. (NYSE: EQS) (“Equus” or the “Fund”)
today announced that it has taken action to protect its investment in Equus Media Development Company, LLC
(“EMDC”), a wholly-owned subsidiary of the Fund, by taking control of EMDC’s bank accounts. These accounts
currently hold approximately $2 million.
Originated by Paula Douglass in January 2007 with a $5 million investment by the Fund, EMDC has a development
financing agreement with Kopelson Entertainment for the purchase of creative material, including motion picture
scripts. The exclusive arrangement with Kopelson Entertainment ended in 2008 and the financing agreement with
them will conclude at the end of 2011.
Paula Douglass served as the President and Chief Executive Officer of EMDC from EMDC’s formation in 2007
until April 2010, when she was terminated by the Fund. During that time, EMDC acquired nine movie scripts for $3
million. The Fund has launched a thorough investigation into the viability of the remaining scripts.
“The performance of EMDC under Paula Douglass’ leadership was unacceptable,” said Richard Bergner, Chairman
of the Fund. “Before being removed as an officer of the Fund, Ms. Douglass was responsible for EMDC’s
operations. Only two of the projects EMDC invested in during Ms. Douglass’ tenure generated revenue and some of
the scripts are inactive at this time. The Fund is currently taking action to maximize Equus’ remaining investment in
EMDC.”
Paula Douglass, along with her husband Sam Douglass (the founder of the Fund and an officer or director of Equus
since its inception), are a part of a group that recently launched a costly and disruptive proxy contest to gain control
of Equus’ Board. Equus believes that the Douglasses’ motivations in launchin