Related Party Transactions

3 Months Ended

Mar. 31, 2014

Related Party Transactions

Related Party Transactions

17. Related Party Transactions

Capstone — May 2013

On May 31, 2013, the Board of Directors appointed Christopher J. Kearns of Capstone as the Company’s Chief Restructuring Officer and Chief Executive Officer, and the Company entered into an agreement with Capstone (and Mr. Kearns) for various services.  During the three months ended March 31, 2014, the Company incurred approximately $0.6 million in connection with this agreement.

Gleacher Acquisition — June 2009

During the third quarter of 2009, the Company received a Notice of Proposed Tax Adjustments from the New York City Department of Finance for underpayment by Gleacher Partners, LLC of Unincorporated Business Tax.  The Company has an off-setting claim against former pre-acquisition Gleacher stockholders for any pre-acquisition tax liabilities, which is partially collateralized by cash of approximately $0.2 million (included within payable to related parties), as well as shares of its common stock held in an escrow account that was established at the closing of the Company’s acquisition of Gleacher Partners, Inc. to satisfy any indemnification obligations.  The Company does not believe, in any event, that the open tax years or other pre-acquisition tax matters will have a material adverse effect on its financial position or results of operations.  The Company’s receivable for this indemnification claim at March 31, 2014 and December 31, 2013 was $0.9 million and $0.9 million, respectively.

In connection with the acquisition of Gleacher Partners, Inc., the Company agreed to pay $10 million to the selling parties over five years after closing the transaction, subject to acceleration under certain circumstances.  The Company’s remaining obligation of approximately $0.2 million at March 31, 2014 and December 31, 2013 is recorded as a liability within the Company’s Consolidated Statements of Financial Condition.

Details on the amounts receivable from or payable to related parties are below:

(In thousands of dollars)	March 31, 2014		December 31, 2013
Receivables from related parties
Former stockholders of Gleacher Partners, Inc.	$	872	$	856
Payables to related parties
Former stockholders of Gleacher Partners, Inc.	$	399	$	399
Capstone	75		76
Payables to related parties - total	$	474	$	475