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
Portfolio Pulse from Benzinga Newsdesk
Altisource Asset Management Corporation (AAMC) has settled litigation with Luxor Capital Group by repurchasing all 144,212 Preferred Shares held by Luxor. The settlement includes a $1M immediate cash payment and three promissory notes totaling $11M due over 3, 5, and 8 years, with interest options of 7.5% cash or 10% PIK. AAMC also agrees to pay Luxor 50% of any proceeds from a separate litigation, capped at $50M. The settlement prevents AAMC's common stock from being delisted by the NYSE and is seen as a positive step by AAMC's CEO.
January 16, 2024 | 4:56 pm
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AAMC has settled litigation with Luxor Capital, involving a repurchase of Preferred Shares, cash payment, and promissory notes. This settlement also prevents the delisting of AAMC's common stock from the NYSE.
The settlement with Luxor is significant for AAMC as it resolves ongoing litigation, removes the threat of delisting from the NYSE, and may be viewed positively by investors as it simplifies the company's capital structure and resolves uncertainty. The immediate cash payment and future notes indicate a manageable financial obligation, while the potential share in litigation proceeds could provide future financial benefits. These factors are likely to be seen as positive by investors, potentially leading to a short-term increase in AAMC's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100