Gleacher & Co. board moves to liquidate

|By:, SA News Editor

Founded by longtime Wall Street rainmaker Eric Gleacher (who left the firm last year), the move to liquidate Gleacher & Co (GLCH +1.7%) comes after an unsuccessful bid to try and sell the business and the inability to return to profitability following the financial crisis.

If approved by shareholders, the company will sell assets, pay expenses, set aside a reserve for future claims, and then return money to the owners. The initial distribution is expected to be about $20M, or $3.23 per share, rising as high as $60M-$90M, or $9.70-$14.55 per share if some of the reserves are returned.

The stock is currently selling for $11.50