Altisource Asset Management Repurchases Preferred Shares In Settlement With Luxor Capital; Luxor Surrenders All 144,212 Of Its Preferred Shares, A $1M Cash Payment Now, Plus 3 Promissory Notes: $2M Due In 3-Years; $3M Due In 5-Years; And$6M Due In 8-Years
Altisource Asset Management Corporation ("AAMC" or the "Company") (NYSE:AAMC) announces that it has settled litigation with Luxor Capital Group, LP and related entities (collectively "Luxor") in respect of the Company's Series A Convertible Preferred Stock (the "Preferred Shares"), as well as separate litigation with former AAMC director Nathanel Redleaf.
Settlement Highlights
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| Each Note bears annual interest at either 7.5% on a cash basis or 10% paid-in-kind ("PIK") basis, at the election of AAMC. The Company shall refrain from making common stock repurchases or issuing dividends at any time the PIK option is in effect and is subject to certain other covenants. |
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As a result of the settlement, which has the effect of increasing the Company's Stockholders' Equity to an amount exceeding $6,000,000, the New York Stock Exchange informed the Company that its November 30, 2023 notice of intent to delist the Company's common stock would be rescinded.
"We are pleased to announce AAMC's global resolution of these matters relating to Luxor," said William Erbey, Chairman and CEO of AAMC. "This represents a positive start to 2024 as we continue to focus and work hard on initiatives to enhance shareholder value going forward."