Nut Tree and Caspian Urge Unitholders to Reject Value Destructive Merger with Martin Resource Management Corp.

A Strong Stand Against the Merger

In a firm letter sent to unitholders, Nut Tree Capital Management L.P. and Caspian Capital L.P., who together hold approximately 13.6% of the outstanding shares of Martin Midstream Partners L.P. (NASDAQ: MMLP), have urged fellow unitholders to vote 'AGAINST' the proposed merger with Martin Resource Management Corp (MRMC). Set to take place during the unitholder meeting on December 30, 2024, the merging of MMLP with MRMC at a price of $4.02 per share has raised serious concerns among these large stakeholder firms, who believe the deal represents a significant detriment to shareholder value.

Nut Tree and Caspian have raised multiple points regarding misleading statements made by MMLP, suggesting that these assertions aim to push through the merger, benefiting only a select few, including Ruben Martin and the management of MRMC, while disregarding the interests of other MMLP unitholders. The firms have positioned themselves as watchdogs for the interests of inactive or less-engaged investors who may not fully grasp the potential long-term ramifications of accepting this merger.

The letter highlights fundamental discrepancies in the valuations presented by MMLP, arguing that the proposed price undervalues the firm considerably and could lead to significant losses for its unitholders. Nut Tree points out that the metrics tied to performance and future prospects of MMLP have not been accurately represented. Furthermore, they firmly believe that the expected synergies touted by the management of MRMC do not convincingly justify the merger and may merely serve as placeholders for strategic rhetoric without substantial backing.

Advisors Olshan Frome Wolosky LLP and Latham & Watkins LLP have been retained as legal counsel for Nut Tree and Caspian, signaling the seriousness with which these firms are approaching the situation. Their expertise reinforces the stance taken in their communications, striving for greater transparency and accountability among MMLP’s current management.

Caspian Capital, established in 1997 and managing assets worth approximately $4.6 billion, alongside Nut Tree Capital, which was founded in 2015 and oversees $4 billion in assets, positions itself with a focus on distressed and undervalued equity and corporate credit. Their overarching strategy emphasizes sustainable growth and value retention for unitholders.

This high-stakes battle invites further scrutiny from investors as they prepare to make a crucial decision regarding their financial futures. By coming forward with their insights and concerns about the merger, Nut Tree and Caspian are advocating for transparency and integrity within corporate governance. The upcoming vote stands not merely as an administrative requisite but as a defining moment that may lay the groundwork for MMLP’s trajectory in the coming years.

While the rhetoric of diversity and inclusion among stakeholder interests rises and falls, this situation underscores the necessity for vigilance and thorough deliberation in the ever-evolving landscape of corporate mergers and acquisitions. With the MMLP vote on the horizon, unitholders must assess the consequences of their choices in this pivotal moment.

In conclusion, as December 30 approaches, all eyes will be on the upcoming unitholder meeting. The implications of this merger far exceed mere monetary considerations; they speak to the health and direction of Martin Midstream Partners and the values it upholds or relinquishes in the face of present pressures. Unitholders are encouraged to reflect on the broader impacts their vote may carry, sustaining an environment that prioritizes the interests of all stakeholders involved.

For further details and the full letter from Nut Tree and Caspian, interested parties may refer to ProtectMMLPValue.com.