<SEC-DOCUMENT>0001013594-20-000437.txt : 20200421
<SEC-HEADER>0001013594-20-000437.hdr.sgml : 20200421
<ACCEPTANCE-DATETIME>20200421171237
ACCESSION NUMBER:		0001013594-20-000437
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20200421
DATE AS OF CHANGE:		20200421
EFFECTIVENESS DATE:		20200421

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HC2 HOLDINGS, INC.
		CENTRAL INDEX KEY:			0001006837
		STANDARD INDUSTRIAL CLASSIFICATION:	FABRICATED STRUCTURAL METAL PRODUCTS [3440]
		IRS NUMBER:				541708481
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-35210
		FILM NUMBER:		20805923

	BUSINESS ADDRESS:	
		STREET 1:		450 PARK AVENUE
		STREET 2:		30TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
		BUSINESS PHONE:		212-235-2690

	MAIL ADDRESS:	
		STREET 1:		450 PARK AVENUE
		STREET 2:		30TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HC2 Holdings, Inc.
		DATE OF NAME CHANGE:	20140415

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PTGi HOLDING, INC.
		DATE OF NAME CHANGE:	20131108

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PRIMUS TELECOMMUNICATIONS GROUP INC
		DATE OF NAME CHANGE:	19960814

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Percy Rockdale LLC
		CENTRAL INDEX KEY:			0001801092
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			MI
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A

	BUSINESS ADDRESS:	
		STREET 1:		595 MADISON AVENUE
		STREET 2:		29TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
		BUSINESS PHONE:		646-896-4446

	MAIL ADDRESS:	
		STREET 1:		595 MADISON AVENUE
		STREET 2:		29TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
</SEC-HEADER>
<DOCUMENT>
<TYPE>DFAN14A
<SEQUENCE>1
<FILENAME>hc2hdfan-042120.htm
<TEXT>
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    <div style="text-align: center; line-height: 18.25pt; font-size: 14pt; font-weight: bold;">SCHEDULE 14A</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">(Rule 14a-101)</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">INFORMATION REQUIRED IN PROXY STATEMENT</div>
    <div style="text-align: center; line-height: 18.25pt; font-size: 14pt; font-weight: bold;">SCHEDULE 14A INFORMATION</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">PROXY STATEMENT PURSUANT TO SECTION 14(a) OF</div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">THE SECURITIES EXCHANGE ACT OF 1934</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">(Amendment No.&#160; )</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt; font-weight: bold;">Filed by the Registrant [&#160; ]</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt; font-weight: bold;">Filed by a Party Other than the Registrant [X]</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt; font-weight: bold;">Check the Appropriate Box:</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="margin-left: 19.2pt; line-height: 11.4pt;">[&#160; ] Preliminary Proxy Statement</div>
    <div style="text-indent: -14.4pt; margin-left: 33.6pt; line-height: 11.4pt;">[&#160; ] Confidential, for Use of the Commission Only (as permitted by<br>
      Rule 14a-6(e)(2))</div>
    <div style="margin-left: 19.2pt; line-height: 11.4pt;">[&#160; ] Definitive Proxy Statement</div>
    <div style="margin-left: 19.2pt; line-height: 11.4pt;">[X] Definitive Additional Materials</div>
    <div style="margin-left: 19.2pt; line-height: 11.4pt;">[&#160; ] Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14a-12</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 18.25pt; font-size: 14pt; font-weight: bold;"><u>HC2 Holdings, Inc.</u></div>
    <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">(Name of registrant as specified in its charter)</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">PERCY ROCKDALE LLC</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">RIO ROYAL LLC</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">MG CAPITAL MANAGEMENT LTD.</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">GEORGE BROKAW</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">KENNETH COURTIS</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">MICHAEL GORZYNSKI</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">ROBIN GREENWOOD</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;">LIESL HICKEY</div>
    <div style="text-align: center; line-height: 13.7pt; font-size: 12pt; font-weight: bold;"><u>JAY NEWMAN</u></div>
    <div style="line-height: 13.7pt;"><br style="line-height: 13.7pt;">
    </div>
    <div style="text-align: center; line-height: 11.4pt; margin-bottom: 6pt; font-weight: bold;">&#160;(Name of person(s) filing proxy statement, if other than the registrant)</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">Payment of Filing Fee (Check the Appropriate Box):</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="margin-left: 12pt; line-height: 11.4pt;">[X] No fee required.</div>
    <div style="text-align: justify; margin-left: 12pt; line-height: 11.4pt;">[&#160; ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; margin-left: 20pt; line-height: 11.4pt;">(1) Title of each class of securities to which transaction applies:</div>
    <div style="text-align: justify; margin-left: 20pt; line-height: 11.4pt;">(2) Aggregate number of securities to which transaction applies:</div>
    <div style="text-indent: -15.6pt; margin-left: 35.65pt; line-height: 11.4pt;">(3) Per unit price or other underlying value of transaction computed pursuant to<br>
      Exchange Act Rule 0-11 (set forth the amount on which the filing fee is<br>
      calculated and state how it is determined):</div>
    <div style="text-align: justify; margin-left: 20pt; line-height: 11.4pt;">(4) Proposed maximum aggregate value of transaction:</div>
    <div style="text-align: justify; margin-left: 20pt; line-height: 11.4pt;">(5) Total fee paid:</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; margin-left: 12pt; line-height: 11.4pt;">[&#160; ] Fee paid previously with preliminary materials:</div>
    <div style="text-indent: -14.4pt; margin-left: 26.4pt; line-height: 11.4pt;">[&#160; ] Check box if any part of the fee is offset as provided by Exchange Act<br>
      Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the form or schedule and the date of its filing.</div>
    <div style="text-align: justify; margin-left: 20pt; line-height: 11.4pt;">(1) Amount Previously Paid:</div>
    <div style="text-align: justify; margin-left: 20pt; line-height: 11.4pt;">(2) Form, Schedule or Registration Statement no.:</div>
    <div style="text-align: justify; margin-left: 20pt; line-height: 11.4pt;">(3) Filing Party:</div>
    <div style="text-align: justify; margin-left: 20pt; line-height: 11.4pt;">(4) Date Filed:</div>
    <div id="DSPFPageBreakArea" style="clear: both; margin-top: 10pt; margin-bottom: 10pt;">
      <div id="DSPFPageBreak" style="page-break-after:always;">
        <hr noshade="noshade" style="margin: 4px 0px; width: 100%; border-width: 0; height: 2px; color: #000000; background-color: #000000; clear: both;"></div>
    </div>
    <div style="text-align: justify; text-indent: 20pt; line-height: 11.4pt;">MG Capital Management Ltd., together with the other participants named herein (collectively, &#8220;MG Capital&#8221;), has
      filed with the Securities and Exchange Commission a definitive consent statement and an accompanying consent card to be used to solicit votes for the election of its slate of director nominees for the Board of Directors of HC2 Holdings, Inc., a
      Delaware corporation (the &#8220;Issuer&#8221;).</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; text-indent: 20pt; line-height: 11.4pt; margin-bottom: 12pt;">On April 21, 2020, MG Capital and its affiliates issued the attached press release.</div>
    <div style="line-height: 11.4pt; margin-bottom: 12pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
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<DOCUMENT>
<TYPE>EX-1
<SEQUENCE>2
<FILENAME>extohc2hdfan-042120.htm
<TEXT>
<html>
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    <div style="text-align: center; line-height: 22.8pt; font-size: 18pt;">MG Capital Encourages HC2 Stockholders to Focus on Electing a Truly Independent Slate of Director Nominees with a Value-Enhancing
      Strategy</div>
    <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
    </div>
    <div style="text-align: center; line-height: 11.4pt; font-style: italic; font-weight: bold;">Calls Into Question the Board&#8217;s Late Decision to Announce an Addition to Its &#8220;Slate of Director
      Nominees&#8221; at the 2020 Annual Meeting Without Yet Publicly Setting a Record Date or Meeting Date</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 11.4pt; font-style: italic; font-weight: bold;">Contends the Board Failed to Adequately Disclose That Its New Intended Nominee Has Long-Standing
      Ties to at Least Three of the Six Incumbent Directors</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 11.4pt; font-style: italic; font-weight: bold;">Latest Move Only Strengthens MG Capital&#8217;s Commitment to Installing Its World-Class Slate, Which
      Has a Viable Strategy for Delivering an Estimated $9 Per Share in Value</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: center; line-height: 13.4pt; margin-bottom: 8pt; font-style: italic; font-weight: bold;">Urges Stockholders to Vote on the <u>GREEN</u> Consent Card For Our Nominees, Who Have Exceptional Backgrounds From Their Tenures Working at Widely-Respected Financial Institutions and Serving on Various Public Company Boards</div>
    <div style="text-align: justify; line-height: 11.4pt;">NEW YORK &#8211; BUSINESSWIRE &#8211; MG Capital Management, Ltd. (together with Percy Rockdale LLC, the nominating stockholder, and its
      affiliates, &#8220;MG Capital&#8221; or &#8220;we&#8221;), a significant stockholder of HC2 Holdings, Inc. (NYSE: HCHC) (&#8220;HC2&#8221; or the &#8220;Company&#8221;), which collectively with the other participants in its solicitation beneficially owns more than 6% of the Company&#8217;s outstanding
      shares, today issued a response to HC2&#8217;s April 21, 2020 announcement regarding the intended addition of Avram Glazer to its slate of nominees for election to the Board of Directors (the &#8220;Board&#8221;) at the 2020 Annual Meeting of Stockholders (the &#8220;Annual
      Meeting&#8221;).</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">Michael Gorzynski, MG Capital&#8217;s founder and managing partner, commented:</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">&#8220;Today&#8217;s announcement, which conspicuously omits an Annual Meeting date since HC2 has not yet set one, only reinforces that the
      incumbent directors have no interest in listening to the voices of stockholders outside of their own insider clique. We are concerned that this prospective addition to the Board will not help change the existing culture of mismanagement and
      self-dealing that has destroyed hundreds of millions of dollars in stockholder value over the past six years.</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">While we recognize the benefit of bringing in new directors, we firmly believe that HC2 needs a reconstituted and truly independent
      Board right away in order to address the Company&#8217;s mounting challenges in an objective manner. Mr. Glazer, who previously ran Zapata Corporation for years prior to that business becoming Harbinger Group, has documented ties to at least three
      directors that date back more than a decade.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">1</sup><font style="font-size: 8pt;">&#160;</font><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">2</sup></div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">In our view, the Board has once again demonstrated that it has no interest in changing the prior practices that brought HC2 to the
      brink of bankruptcy. Today&#8217;s announcement comes on the heels of two investors suing HC2 over the Company&#8217;s alleged effort to mislead stockholders by including coercive language in its Consent Revocation Statement related to the financial implications
      of a change in control. HC2 suggested to stockholders that if our nominees took control of the Board, HC2 might not have the capital available to pay holders of preferred securities &#8211; resulting in material financial duress. While HC2 ultimately
      responded to the lawsuit by granting a waiver to our nominees, the legal proceeding remains active before the Delaware Court. This latest announcement also comes following an extended period during which the Texas Department of Insurance has been
      examining Continental General Insurance Company&#8217;s corporate governance and related party transactions.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">3</sup></div>
    <div style="text-align: justify; line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;"> <br>
      </sup></div>
    <div style="text-align: justify; line-height: 11.4pt;"><br>
      <br>
      <br>
      <hr noshade="noshade" align="left" style="text-align: left; background-color: #000000; border: 0px; height: 1px; width: 2in; margin-left: 0pt; margin-right: auto; color: #000000;">
      <div style="text-align: left; line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">1</sup> Zapata Corporation 8-K filing with the
          Securities and Exchange Commission, dated July 9, 2009 (link).</div>
      <div style="text-align: left; line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">2</sup>&#160;<font style="font-style: italic;">Bloomberg Businessweek</font>, Is Zapata The Glazers' Toy?, dated July 7, 1996 (link) and HC2 Holdings, Inc. website (link).</div>
      <div style="text-align: left; line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;">3</sup>&#160;<font style="font-style: italic;">Institutional Investor</font>, No One: Absolutely No One: I Wonder What Phil Falcone Is Up To?, April
          20, 2020 (link).</div>
    </div>
    <div style="text-align: justify; line-height: 11.4pt;"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;"> <br>
      </sup></div>
    <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
      <div style="page-break-after: always;" id="DSPFPageBreak">
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    </div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt;">We encourage all stockholders to view our consent solicitation as a real opportunity to right the many wrongs at HC2. Our slate of
      nominees &#8211; which possess strong public board experience and robust expertise across the sectors HC2 invests in &#8211; are firmly committed to unlocking value for long-suffering stockholders. That is why we spent months developing a strategy to deliver an
      estimated $9 per share in value through the elimination of corporate waste, a systematic reduction of debt, and an optimization of HC2&#8217;s portfolio around &#8216;crown jewel&#8217; assets.&#8221;</div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="background-color: #FEFEFE; line-height: 14.4pt;">
      <div style="text-align: justify; line-height: 11.4pt;">Stockholders can learn about how to consent on the&#160;<font style="font-weight: bold;"><u>GREEN</u></font>&#160;card by visiting www.ABetterHC2.com. The website includes additional information regarding our six director nominees and
        their plan for delivering an estimated $9 per share in value. As a reminder, to demonstrate alignment with stockholders, our nominees have committed to slashing director fees by 50% and compensating Michael Gorzynski $1 for his potential service as
        interim Chief Executive Officer.</div>
    </div>
    <div style="background-color: #FEFEFE; line-height: 14.4pt;">
      <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
      </div>
    </div>
    <div style="background-color: #FEFEFE; line-height: 14.4pt;">
      <div style="text-align: center; line-height: 11.4pt;">***</div>
      <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
      </div>
      <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">We urge HC2 stockholders to consent to all three proposals on the&#160;GREEN&#160;consent card and return it in your
        postage-paid envelope provided.&#160;The consent deadline is May 7, 2020.</div>
      <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
      </div>
      <div style="text-align: center; line-height: 11.4pt; font-weight: bold;">Should you have any questions or need assistance with voting, please contact Saratoga Proxy Consulting LLC at
        (888) 368-0379 or (212) 257-1311 or by email at&#160;info@saratogaproxy.com.</div>
      <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
      </div>
      <div style="text-align: center; line-height: 11.4pt;"><font style="font-weight: bold;">PROTECT YOUR INVESTMENT.</font>&#160;<font style="font-weight: bold;">SIGN,&#160;DATE&#160;AND&#160;RETURN&#160;YOUR FILLED OUT&#160;GREEN&#160;CONSENT CARD TODAY.</font></div>
      <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
      </div>
      <div style="text-align: center; line-height: 11.4pt;">***</div>
    </div>
    <div style="line-height: 12.55pt;"><br style="line-height: 12.55pt;">
    </div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="text-align: justify; line-height: 11.4pt; font-weight: bold;"><u>Contacts</u></div>
    <div style="line-height: 11.4pt;"><br style="line-height: 11.4pt;">
    </div>
    <div style="line-height: 11.4pt;">For Investors:<br>
      <br>
      Saratoga Proxy Consulting LLC<br>
      John Ferguson / Joe Mills, 212-257-1311<br>
      jferguson@saratogaproxy.com&#160;/&#160;jmills@saratogaproxy.com<br>
      <br style="line-height: 11.4pt;">
      <br>
      For Media:<br>
      <br>
      Profile<br>
      Greg Marose / Charlotte Kiaie, 347-343-2999</div>
    <div style="line-height: 11.4pt;">gmarose@profileadvisors.com&#160;/&#160;ckiaie@profileadvisors.com</div>
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