ITEM 8.01. OTHER EVENTS.

As part of its regular quarter-end review, the Fund's Valuation Committee made determinations regarding the fair values of the Fund's investments, resulting in an aggregate net increase of approximately $18.3 million or $.75 per share, effective July 31, 2008. The fair values of the following portfolio companies were adjusted: Custom Alloy Corporation, MVC Automotive Group B.V., SGDA Sanierungsgesellschaft fur Deponien und Altlasten mbH, Summit Research Labs, Inc., Timberland Machines & Irrigation, Inc., Velocitius B.V., Vestal Manufacturing Enterprises, Inc., and Vitality Foodservice, Inc.

During the quarter, one of the Fund's portfolio companies, Phoenix Coal Corporation ("Phoenix"), began trading on the Toronto Stock Exchange. Consistent with the Fund's valuation procedures, effective June 30, 2008, the Fund has been marking this investment to its market price and, as a result, the Fund's reported net asset value reflects the market price of the Fund's Phoenix shares.

The Fund's net asset value as of July 31, 2008 is approximately $17.18 per share.