On May 14, 2020, Wynnefield Capital, Inc. announced that its good faith attempt to reach a settlement with MVC Capital Inc. is teetering, due to the chicanery of the Company's long-standing Chairman, Mike Tokarz. Wynnefield Capital stated that Chairman Mike Tokarz refuses to refrain from entering the Company into a transaction prior to the annual meeting, without first receiving approval from a majority of independent directors. Wynnefield Capital added that it could seek to enter into self-serving transaction not requiring stockholder approval or block serious expression of interest from a third party. Wynnefield Capital stated that it concerns warranted as Mike Tokarz has demonstrated a lack of integrity, highlighted by offer of greenmail to Wynnefield Capital in attempt to deter Wynnefield Capital from pursuing nominations of independent directors. Wynnefield Capital added that Mike Tokarz and fellow insider Warren Holtsberg should act in the best interests of the Company and its stockholders, by recusing themselves from a vote of the Board involving a merger or other extraordinary transaction prior to the annual meeting. In addition, Wynnefield Capital stated that it urges like-minded stockholders and independent directors to reign in the Chairman and if settlement not reached, Wynnefield Capital to pursue election of 3 independent directors to replace Mike Tokarz and long-tenured Board members, Emilio Dominianni and Gerald Hellerman.