Altisource Asset Management (AAMC) Announces Settlement of Litigation with Putnam Investments, LLC
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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”).
- 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.”
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