December 12, 2012, the Board of Directors of Handleman Company (the Registrant) authorized the payment of final expenses of the Registrant and the distribution of the Registrants remaining assets.
The Registrant previously took action to notify holders of known claims of its dissolution and to
publish notice of its dissolution for the benefit of holders of unknown claims pursuant to the provisions of Michigan Compiled Laws Sections 450.1841a and 450.1842a, respectively, so that additional claims against the Registrant shall be barred.
After paying or making provision for all liabilities of the Registrant determined to be valid, the
Registrants remaining assets totaled $7,541,983, or approximately $0.37 per share for each of the Registrants 20,500,181 outstanding shares. Payments to shareholders of record are expected to be made by Franklin Advisors, LLC, the
Registrants paying agent, prior to year end. Approximately $1.8 million has been paid to a liquidation trust for the settlement of a remaining tax claim. If funds remain after the final settlement of that claim and of disputes related to that
claim, they will be distributed to shareholders on a pro rata basis.
With these final payments,
the dissolution, liquidation and winding up of the Registrant are complete. The Registrant will no longer have operations, employees or offices, and will no longer file reports with the Securities and Exchange Commission.