HOUSTON, June 24, 2011 /PRNewswire/ -- Invesco Advisers,
Inc. ("Invesco") and the Boards of Trustees (the "Board") of each
of the Invesco Van Kampen closed-end funds identified below (the
"Funds") today announced that the Board has determined to reject
the demands contained in the demand letters received by each Fund
related to the Fund's redemption of auction rate preferred shares
or remarketed preferred shares ("ARPS").
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The following information supersedes the information in a
release dated June 23, 2011.
As previously announced on September 10,
2010 and April 15, 2011, each
of the Funds listed below received a demand letter from a law firm
on behalf of purported common shareholders of each Fund. The demand
letters alleged breaches of fiduciary duties owed to the Fund's
common shareholders as a result of redemptions at par of certain of
the Funds' ARPS, and demanded that the Board take action to remedy
those alleged breaches. Some of the allegations made in the
demand letters were repeated and expanded in complaints filed on
July 22, 2010 and August 3, 2010 in the Supreme Court of the
State of New York, New York County.
The Funds that received the demand letters are:
|
|
Symbol
|
Fund
|
|
VKI
|
Invesco Van Kampen Advantage
Municipal Income Trust II
|
|
VLT
|
Invesco Van Kampen High Income
Trust II
|
|
VMO
|
Invesco Van Kampen Municipal
Opportunity Trust
|
|
VKQ
|
Invesco Van Kampen Municipal
Trust
|
|
VVR
|
Invesco Van Kampen Senior Income
Trust
|
|
VGM
|
Invesco Van Kampen Trust For
Investment Grade Municipals
|
|
VTN
|
Invesco Van Kampen Trust For
Investment Grade New York Municipals
|
|
|
|
|
|
On August 10, 2010, the Board
established a special committee (the "Special Committee") of
certain independent Trustees to evaluate the claims made in the
demand letters and complaints with the assistance of independent
counsel. A subsequent demand letter was also referred to the
Special Committee. Based upon its inquiry, the Special Committee
recommended that the Board reject the demands specified in the
demand letters. After reviewing the findings of the Special
Committee, the independent Trustees for each Fund adopted the
Special Committee's recommendation and voted to reject the demands
and seek dismissal of related lawsuits.
The Board and Invesco are currently exploring potential
alternative forms of leverage, including alternative preferred
stock structures like variable rate demand preferred shares (VRDP)
and variable municipal term preferred shares (VMTP) and the
expanded use of tender option bonds (TOBs), reverse repurchase
agreements and credit facilities, in order to provide liquidity to
ARPS holders for each Invesco Van Kampen closed-end fund with ARPS
outstanding (the "Closed-End Funds"). There is no guarantee that
all or a portion of a particular Closed-End Fund's ARPS will be
redeemed. The Board and Invesco will determine, based on the facts
and circumstances applicable to each Closed-End Fund, whether such
alternative forms of leverage would be appropriate and in the best
interest of the respective Closed-End Fund as a whole and its
shareholders.
Invesco will continue to keep market participants and
shareholders informed of the progress to redeem ARPS via press
releases and Invesco's website at www.invesco.com.
The Closed-End Funds covered by the Board and utilizing ARPS
include:
|
|
Symbol
|
Fund
|
|
VPV
|
Invesco Van Kampen Pennsylvania
Value Municipal Income Trust
|
|
VKI
|
Invesco Van Kampen Advantage
Municipal Income Trust II
|
|
VCV
|
Invesco Van Kampen California
Value Municipal Income
|
|
VMV
|
Invesco Van Kampen Massachusetts
Value Municipal Income Trust
|
|
VMO
|
Invesco Van Kampen Municipal
Opportunity Trust
|
|
VKQ
|
Invesco Van Kampen Municipal
Trust
|
|
VOQ
|
Invesco Van Kampen Ohio Quality
Municipal Trust
|
|
VKL
|
Invesco Van Kampen Select Sector
Municipal Trust
|
|
VVR
|
Invesco Van Kampen Senior Income
Trust
|
|
VIM
|
Invesco Van Kampen Trust For
Insured Municipals
|
|
VGM
|
Invesco Van Kampen Trust For
Investment Grade Municipals
|
|
VTJ
|
Invesco Van Kampen Trust For
Investment Grade New Jersey Municipals
|
|
VTN
|
Invesco Van Kampen Trust For
Investment Grade New York Municipals
|
|
|
|
|
|
About Invesco
Invesco is a leading independent global investment manager,
dedicated to helping investors worldwide achieve their financial
objectives. By delivering the combined power of our distinctive
investment management capabilities, Invesco provides a wide range
of investment strategies and vehicles to our retail, institutional
and high net worth clients around the world. Operating in 20
countries, the company is listed on the New York Stock Exchange
under the symbol IVZ. Additional information is available at
www.invesco.com.
Invesco Advisers, Inc. is an investment adviser; it provides
investment advisory services to individual and institutional
clients and does not sell securities. Invesco Distributors, Inc. is
the U.S. distributor for Invesco Ltd.'s retail mutual funds,
exchange-traded funds and institutional money market funds and the
subdistributor for its STIC Global Funds. Both are wholly owned,
indirect subsidiaries of Invesco Ltd.
SOURCE Invesco