This Amendment No. 10 amends the Statement on Schedule 13D (the “Schedule 13D”) filed with the Securities and Exchange Commission on July 9, 2013 by Robert C. Ammerman with respect to shares of the 9 3/8% Cumulative Participating Redeemable Preferred Stock (face value $12.00) of Ameritrans Capital Corporation.
Item 4.
Purpose of Transaction
.
Item 4 is hereby amended and restated to read as follows:
Mr. Ammerman acquired the Record Shares for investment purposes. Mr. Ammerman currently intends to obtain control of a majority of the issued shares of the 9 3/8% Cumulative Participating Redeemable Preferred Stock (face value $12.00) of the Issuer, and to exercise corresponding voting and control rights in the Issuer, which may result in all or some of the transactions identified in clauses (a)-(j) of Item 4 of Schedule 13D.
On June 19, 2013, Mr. Ammerman delivered to the Issuer a written consent with respect to the Record Shares and the shares of the 9 3/8% Cumulative Participating Redeemable Preferred Stock (face value $12.00) owned by one other person to effect the removal of John R. Laird, Ivan J. Wolpert, Steven Etra and Elliott Singer as directors of the Issuer and to elect Robert Ammerman and three other persons as directors of the Issuer. Upon the Issuer refusing to recognize the validity of such consent, Mr. Ammerman filed an action in the Court of Chancery of the State of Delaware on June 26, 2013 to effect the actions taken by the consent and to invalidate the provisions of the Issuer’s bylaws establishing the quorum and vote required for board action. Mr. Ammerman intends to take actions reasonably related to enforcing the validity of the consent.
On July 12, 2013, Mr. Ammerman and the three other persons named in the written consent previously delivered by Mr. Ammerman to the Issuer were appointed directors of the Issuer, effective upon the resignation of all of the Issuer’s prior directors.
On July 17, 2013, the Issuer entered into an agreement with Mr. Ammerman pursuant to which the Issuer may borrow up to $200,000 from Mr. Ammerman at any time prior to December 31, 2013. Amounts borrowed pursuant to such agreement are unsecured and bear interest at a rate of 5% per annum. The Issuer is to repay any amounts borrowed thereunder on December 31, 2013, and may elect to prepay such amounts only at the direction of a majority of the Issuer’s directors, excluding Mr. Ammerman.
On July 22, 2013, Mr. Ammerman was appointed as the Issuer’s interim Chief Executive Officer, President, Chief Financial Officer, Treasurer and Secretary.