Altisource Asset Management Corporation Announces Settlement of Litigation with Putnam Investments, LLC
February 18 2021 - 8:00AM
Altisource Asset Management Corporation (“AAMC” or the “Company”)
(NYSE American: AAMC) is pleased to announce that the Company has
settled ongoing litigation with Putnam Investments, LLC and its
affiliates (collectively “Putnam”), one of the plaintiffs in the
litigation related to the Company’s Series A Convertible Preferred
Stock (the “Preferred Shares”).
Settlement Highlights
- The Company will deliver to Putnam
288,283 shares of common stock in exchange for 81,800 Preferred
Shares, which were previously issued at $1,000 per share.
- The Company agreed to pay
$1,636,000 to Putnam within three business days of the effective
date of the settlement agreement, and $1,227,000 on the one-year
anniversary of the effective date of the settlement agreement.
- The Company granted a most favored
nation clause to Putnam requiring the Company to pay Putnam the
difference, subject to certain terms and conditions, if the Company
enters into a mutually agreed settlement with another holder of
Preferred Shares at a higher value per Preferred Share than
provided to Putnam under the Settlement Agreement.
- Putnam agreed to a stipulation
dismissing their claims with prejudice in the subject litigation
and releasing the Company from all other claims relating to the
Preferred Shares.
- AAMC expects to recognize a
one-time benefit of approximately $72 million from this settlement
in net income available to common shareholders.
“We are pleased to announce the completion of
this settlement and look forward to having Putnam onboard. We
believe this transaction benefits all of our stakeholders and
resolves a substantial portion of the company’s disputes with
preferred shareholders,” stated Indroneel Chatterjee, Chief
Executive Officer of AAMC. “It has been an exciting and meaningful
start to 2021 for AAMC, and there is much more our new management
team intends to accomplish.”
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; 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
RelationsT: +1-704-885-2461E: IR@AltisourceAMC.com
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