Covia Fair Fund Distribution Agent Announces Notice of Distribution Plan

CHANHASSEN, Minn., March 23, 2022 /PRNewswire/ --

UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

ADMINISTRATIVE PROCEEDING
File No. 3-20163

If you held Covia common stock, listed on a U.S. exchange and traded under the symbol CVIA (the "Security") at the close of trading on March 22, 2019 (the "Relevant Date"), you may be eligible to recover from the Covia Fair Fund. You must submit a completed Proof of Claim Form with the necessary documentation so that it is postmarked or, if not sent by U.S. Mail, received by JULY 12, 2022 (the "Claims Bar Date") to be eligible to recover from the Fair Fund.

PLEASE READ THE PLAN NOTICE CAREFULLY AND IN ITS ENTIRETY. IF YOU TIMELY SUBMIT A CLAIM FORM AND YOU SATISFY THE ELIGIBILITY CRITERIA UNDER THE DISTRIBUTION PLAN APPROVED BY THE COMMISSION, YOU MAY BE ELIGIBLE FOR A DISTRIBUTION PAYMENT FROM THE COVIA FAIR FUND. THE PLAN NOTICE CONTAINS IMPORTANT INFORMATION REGARDING THE COVIA FAIR FUND, THE PLAN, AND ELIGIBILITY UNDER THE PLAN.

Background

On December 8, 2020, the Commission issued the Order instituting and simultaneously settling cease-and-desist proceedings against the Respondents. In the Order, the Commission found that from at least October 2014 to March 2018, Fairmount, a provider of sand-based products used by oil and gas exploration and production companies for fracking, misled investors by overstating the performance and commercial potential of high-margin proppant products it was developing and selling. Specifically, the Commission found that Fairmount's materially false and misleading statements about these products appeared in offering documents in connection with its 2014 initial public offering and two subsequent offerings in 2016; in annual, quarterly, and current reports filed with the Commission; in presentations to investors and analysts; and on the company's website. At the end of June 2020, Covia, and its U.S. subsidiaries, including Fairmount, filed voluntary petitions for Chapter 11 bankruptcy reorganization.

In the Order, the Commission ordered the Respondents to pay, jointly and severally, a civil penalty of $17 million, which was deemed satisfied by a cash payment from Covia in the amount of $1 million pursuant to Covia Holdings Corporation and its Debtor Affiliates' confirmed Chapter 11 plan or an order of the bankruptcy court allowing such claim and authorizing such payment. The Commission also established the Fair Fund, pursuant to Section 308(a) of Sarbanes-Oxley Act of 2002, so the penalty paid can be distributed to investors harmed by the Respondents' conduct described in the Order.

Who is Potentially Eligible for Compensation?

If you held Covia common stock at the close of trading on March 22, 2019; are not an Excluded Party as defined in the Plan; and suffered a loss according to the Plan; you may be eligible for a Distribution Payment from the Covia Fair Fund. Distribution Payments will be subject to a $10.00 Minimum Distribution Amount.

Excluded Parties are defined as the Respondent; present or former officers or directors of Respondent and any assigns, creditors, heirs, distributees, spouses, parents, dependent children or controlled entities of any of the foregoing persons or entities; any employee or former employee of the Respondent or any of its affiliates who has been terminated for cause or has otherwise resigned, in connection with the conduct described in the Order; any Person who, as of the Claims Bar Date, has been the subject of criminal charges related to the conduct described in the Order or any related Commission action; any firm, trust, corporation, officer, or other entity in which Respondent has or had a controlling interest, including any parent company to Respondents or any parent company to an entity that acquired Covia or Fairmount or merged with Covia or Fairmount;  any firm, trust, corporation, officer, or other entity in which Respondents have had a controlling interest; the Fund Administrator, its employees, and those persons assisting the Fund Administrator in its role as Fund Administrator; and, any purchaser or assignee of another Person's right to obtain a recovery from the Covia Fair Fund for value; provided, however, that this provision shall not be construed to exclude those Persons who obtained such a right by gift, inheritance, or devise or operation of law.

How to Make a Claim

You must complete and sign the Claim Form and submit it to Fund Administrator so that it is postmarked or, if not sent by U.S. Mail, received no later than JULY 12, 2022.

The Claim Form can be downloaded at www.CoviaFairFund.com. If you have any questions or would like the Court-appointed Fund Administrator to send you a Claim Form, call 855-686-1990 or email [email protected].

You can file a Claim Form by mailing the completed form to:

Covia Fair Fund
c/o Analytics Consulting LLC
Fund Administrator
P.O. Box 2007
Chanhassen, MN 55317-2007

If you do not complete and timely submit a Claim Form, you will not be considered for eligibility to receive a Distribution Payment under the Plan.

Obtaining a Plan of Distribution and Additional Information

You can get a copy of the Plan and additional information concerning the Covia Fair Fund at www.CoviaFairFund.com. You can also obtain a copy of the Plan by emailing the Fund Administrator at [email protected], calling the Fund Administrator at 855-686-1990, or writing to Covia Fair Fund, c/o Analytics Consulting LLC, Fund Administrator, P.O. Box 2007, Chanhassen, MN 55317-2007.

SOURCE Analytics

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