NEW YORK, June 12, 2008 (PRIME NEWSWIRE) -- SC Fundamental LLC ("SC Fundamental") announced today that it has sent a letter dated June 12, 2008 to Gary Martin and the Board of Directors of Capital Southwest Corporation (Nasdaq:CSWC).
The full text of the letter follows:
June 12, 2008 Mr. Gary Martin and the Board of Directors Capital Southwest Corporation 12900 Preston Road, Suite 700 Dallas, TX 75230 Dear Mr. Martin and the Board of Directors, As shareholders of Capital Southwest, we remain perplexed at management's seeming indifference to the large discount to underlying net asset value at which shares of the company currently trade. While recent efforts by the company have made clearer the underlying value of its net assets, Capital Southwest has consistently failed to take action to narrow the discount between net asset value and market value. ZS Crossover II L.P. has publicly made a number of suggestions in letters sent to the board of directors dated January 29, 2008 and May 29, 2008. We believe adopting these sensible suggestions would help to maximize shareholder value and reduce the large discount to net asset value. Until such time as the management and board of directors pursues concrete actions, such as those suggested by ZS Crossover II L.P., we intend to withhold our votes for the re-election of current board members. Sincerely, SC Fundamental LLC on behalf of itself and affiliated investment entities David A. Hurwitz, Partner