CHRISTIANSTED, US Virgin Islands, January 06, 2021 (GLOBE NEWSWIRE) – Altisource Asset Management Corporation (“AAMC” or the “Company”) (NYSE American: AAMC) is pleased to announce that the Company has terminated previously referred to have been considered by the Termination and Transition Agreement, dated 13 August 2020 (the “Termination Agreement”), by and among Front Yard Residential Corporation (“Front Yard”), Front Yard Residential LP and AAMC.
Key movement events
- AAMC was paid by Front Yard a total 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 common stock.
- AAMC transferred the Company’s Indian subsidiary equity, the Company’s Cayman Islands subsidiary equity interests, and certain other assets used in connection with Front Yard’s business activity to Front Yard for full consideration of the equity interests in Front Yard’s Indian subsidiary and $ 8.2 million, of which $ 3,200,000 was paid to AAMC in cash and $ 5,000,000 was paid to AAMC in Front Yard common stock.
- The nominal sale of Front Yard at $ 16.25 per share is expected to provide liquidity for the 1,624,465 shares of Front Yard stock purchased by AAMC at an average cost of $ 12.68 per share.
“2020 has been an interim year for AAMC. We have completed this transaction on time and efficiently for both Front Yard and AAMC. This completion has allowed us to quickly make the right size and increase our footprint while significantly reducing our administration costs. We have retained key employees who have developed and implemented non-performing loan and single family rent balancing investment strategies for AAMC stakeholders and are now focusing on our strategy asset-based lending at this stage of the economic cycle. Upon completion, we are particularly focused on our new business lines and generating progressive cash flow to increase value for our shareholders, ”said Indroneel Chatterjee, AAMC Chief Executive.
Regulatory Changes
In connection with the termination of the Termination and Transition Agreement, Altisource Asset Management Corporation has accepted letters of resignation from George G. Ellison, Robin N. Lowe, and Stephen H. Gray.
- According to the letter submitted by George G. Ellison and Company, dated 13 August 2020, Mr. Ellison resigned as AAMC Joint Chief Executive. Following Mr Ellison’s retirement, Indroneel Chatterjee remained the sole Chief Executive of AAMC.
- In connection with the Termination Agreement, Robin N. Lowe resigned as Chief Financial Officer at AAMC. Following the terms of his Agreement, Mr. Lowe retired as an officer and employee of the Company effective at the end of the year on 31 December 2020.
- Also, in connection with the termination of the AMA, Stephen H. Gray resigned as Adviser General and Secretary of AAMC. Following the resignation of his letter, Mr. Gray resigned as an officer and employee of the Company effective at the close of business on 31 December 2020.
Appoint a new CFO
Effective January 1, 2021, AAMC Board of Directors nominated Chris Moltke-Hansen to the Company’s Chief Financial Officer. It will be responsible for overseeing all financial aspects of the company, including financial planning and analysis, accounting and financial reporting, as well as managing tax activities, internal audit, finance, and investment relationships.
“I am pleased to announce the promotion of Chris from Managing Director to CFO, and we welcome him to our Management Leadership Team,” said Indroneel Chatterjee, Chairman and Chief Executive. “Chris’ experience in managing financial activity, as well as driving operational change and strategic growth, is expected to have an immediate impact as we set AAMC for controlled growth. ”
About AAMC
AAMC is an asset management company that provides portfolio management and corporate governance services to investment vehicles. Further information is available at www.altisourceamc.com.
Forward-looking statements
This press release contains forward-looking statements that include a number of risks and uncertainties. These forward-looking statements include all statements that are not historical facts, including statements about beliefs and governing expectations. Forward-looking statements are based on management beliefs as well as assumptions made by managers and currently available information. Because such statements are based on expectations of future economic performance and are not statements of historical fact, actual results may differ materially from those intended. The risks and uncertainties posed by forward-looking statements include, but are not limited to: our ability to implement our business strategy; our ability to retain and recruit key staff; our ability to develop and implement new businesses or, to the extent that such businesses have developed, our ability to sustain them or sustain the performance of such businesses; our ability to build, maintain and sustain our strategic relationships; our ability to secure additional asset management messages; the potential for COVID-19 pandemics to adversely affect our business, financial position, operations, business prospects, customers, employees and third-party service providers; our ability to compete effectively with our competitors; Front Yard ‘s ability to complete its named merger business, which could impact the value of our shares of Front Yard; the failure of our service providers to carry out their duties effectively under their agreements with us; developments in the litigation regarding the AAMC redemption obligations under the Series A Certificate of Assignments to convert their preferred Stock (the “Series A Shares”), including the ability of AAMC to obtain relief relief confirming that AAMC is required to repurchase any of the Series A Shares. on the 15 March 2020 reversal date since AAMC had no legally available funds to claim all, but not less, Series T-Shares, request that release date; general economic and market conditions; government regulations, taxation and policies and other risks and uncertainties described in the “Risk Factors” and other sections described from time to time in current and future films by the Securities and Exchange Commission. Exchange. The previous list of factors should not be construed as full.
The statements in this press release are current from the date of this press release only. The Company assumes no responsibility to update or publicly review forward-looking statements or any other information described herein, whether as a result of new information, future events or else.