Altisource Asset Management Corporation Reports Completion of Previously Announced Termination of Asset Management Agreement ...
January 06 2021 - 4:50PM
Altisource Asset Management Corporation (“AAMC” or the “Company”)
(NYSE American: AAMC) is pleased to announce that the Company has
completed the previously announced transition contemplated by the
Termination and Transition Agreement, dated August 13, 2020 (the
“Termination Agreement”), by and among Front Yard Residential
Corporation (“Front Yard”), Front Yard Residential L.P. and AAMC.
Transaction Highlights
- AAMC was paid by Front Yard an
aggregate termination fee of $46,000,000, of which $30,000,000 was
paid to AAMC in cash and $16,000,000 was paid to AAMC in Front
Yard’s common stock.
- AAMC transferred the equity of the
Company’s Indian subsidiary, the equity interests of the Company’s
Cayman Islands subsidiary, and certain other assets used in
connection with the operation of Front Yard’s business to Front
Yard for aggregate consideration of the equity interests in Front
Yard’s Indian subsidiary and $8,200,000, of which $3,200,000 was
paid to AAMC in cash and $5,000,000 was paid to AAMC in Front
Yard’s common stock.
- The announced sale of Front Yard at
$16.25 per share is expected to provide liquidity for the 1,624,465
shares of Front Yard stock that AAMC purchased at an average cost
of $12.68 per share.
“2020 has been a transitional year for AAMC. We
have completed this transaction on-time and effectively for both
Front Yard and AAMC. This termination has provided us
the opportunity to quickly right-size and optimize our operational
footprint while significantly reducing our overhead costs. We have
retained key personnel that developed and implemented successful
non-performing loan and single-family rental equity investment
strategies for AAMC's stakeholders and are now focused on our
asset-based lending strategy at this juncture in the economic
cycle. With the termination complete, we are solely focused on our
new lines of business and generating positive cash flow to increase
value for our shareholders,” stated Indroneel Chatterjee, Chief
Executive Officer of AAMC.
Management Changes
In connection with the completion of the
Termination and Transition Agreement, Altisource Asset Management
Corporation has accepted resignation letters from George G.
Ellison, Robin N. Lowe, and Stephen H. Gray.
- In accordance with the resignation
letter entered by George G. Ellison and the Company, dated August
13, 2020, Mr. Ellison resigned as Co-Chief Executive Officer of
AAMC. Following the resignation of Mr. Ellison, Indroneel
Chatterjee remained as the sole Chief Executive Officer of
AAMC.
- In connection with the Termination
Agreement, Robin N. Lowe resigned as Chief Financial Officer of
AAMC. Pursuant to the terms of his Agreement, Mr. Lowe resigned as
an officer and employee of the Company effective at the close of
business on December 31, 2020.
- Also, in connection with the
termination of the AMA, Stephen H. Gray resigned as General Counsel
and Secretary of AAMC. Pursuant to his resignation letter, Mr. Gray
resigned as an officer and employee of the Company effective at the
close of business on December 31, 2020.
Appointment of New CFO
Effective January 1, 2021, the Board of
Directors of AAMC promoted Chris Moltke-Hansen to Chief Financial
Officer of the Company. He will be responsible for overseeing all
financial aspects of the company, including financial planning and
analysis, accounting and financial reporting, as well as managing
the tax, internal audit, treasury, and investor relations
functions.
“I am pleased to announce Chris’s promotion from
Managing Director to CFO, and welcome him to our Executive
Leadership Team,” said Indroneel Chatterjee, Chairman and Chief
Executive Officer. “Chris’s experience in leading financial
operations, as well as driving operational change and strategic
growth is expected to make an immediate impact as we position AAMC
for disciplined growth.”
About AAMC
AAMC is an asset management company that
provides portfolio management and corporate governance services to
investment vehicles. Additional information is available at
www.altisourceamc.com.
Forward-looking Statements
This press release contains forward-looking
statements that involve a number of risks and uncertainties. Those
forward-looking statements include all statements that are not
historical fact, including statements about management’s beliefs
and expectations. Forward-looking statements are based on
management’s beliefs as well as assumptions made by and information
currently available to management. Because such statements are
based on expectations as to future economic performance and are not
statements of historical fact, actual results may differ materially
from those projected. The risks and uncertainties to which
forward-looking statements are subject include, but are not limited
to: our ability to implement our business strategy; our ability to
retain and recruit key employees; our ability to develop and
implement new businesses or, to the extent such businesses are
developed, our ability to make them successful or sustain the
performance of any such businesses; our ability to build, retain
and maintain our strategic relationships; our ability to obtain
additional asset management clients; the potential for the COVID-19
pandemic to adversely affect our business, financial position,
operations, business prospects, customers, employees and
third-party service providers; our ability to effectively compete
with our competitors; Front Yard's ability to complete its
announced merger transaction, which could affect the value of the
shares of Front Yard held by us; the failure of our service
providers to effectively perform their obligations under their
agreements with us; developments in the litigations regarding
AAMC's redemption obligations under the Certificate of Designations
of its Series A Convertible Preferred Stock (the “Series A
Shares”), including AAMC's ability to obtain declaratory relief
confirming that AAMC was not obligated to redeem any of the Series
A Shares on the March 15, 2020 redemption date since AAMC did not
have funds legally available to redeem all, but not less than all,
of the Series A Shares requested to be redeemed on that redemption
date; general economic and market conditions; governmental
regulations, taxes and policies and other risks and uncertainties
detailed in the “Risk Factors” and other sections described from
time to time in the Company’s current and future filings with the
Securities and Exchange Commission. The foregoing list of factors
should not be construed as exhaustive.
The statements made in this press release are
current as of the date of this press release only. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements or any other information contained
herein, whether as a result of new information, future events or
otherwise.
FOR FURTHER INFORMATION CONTACT: |
Investor Relations |
T: +1-704-275-9113 |
E: IR@AltisourceAMC.com |
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