Citadel Income Fund in a high-profile proxy fight opposite Saba Capital Management, L.P. and certain associated parties

Our Toronto office represented Citadel Income Fund in a high-profile proxy fight opposite Saba Capital Management, L.P. and certain associated parties (“Saba”).

Saba, Citadel’s largest unitholder holding more than 20% of the outstanding units, submitted a requisition to, among other things, replace the trustee and manager of Citadel and approve the subsequent termination and wind-up of the issuer.

The dispute ultimately resulted in a commercial settlement pursuant to which, among other things, the requisition was withdrawn. Further, it was agreed that Citadel would be able to pursue a restructuring in connection with the fund’s business objectives and Saba would support same.

Based on public filings, it appears that the dissidents subsequently reduced their stake in Saba.