American Spectrum Realty, Inc. (NYSE/MKT: AQQ) – a real estate
investment management and leasing company – today announced the
settlement of an action filed by American Spectrum in the District Court
of Harris County, Texas, entitled American Spectrum et. al. v. Dunham
& Associates Holdings, Inc. et. al., Case No. 2014-24363.
The Settlement Agreement entered into between American Spectrum and its
affiliates and Dunham & Associates Holdings and its affiliates provides
for the repurchase by the Dunham entities from the American Spectrum
entities of fourteen properties (collectively, the "Properties")
previously transferred by the Dunham entities pursuant to a Contribution
Agreement between American Spectrum and Dunham. The parties valued the
Properties at an aggregate value of $55,531,000.00 and the Dunham
entities assumed debt on the Properties in an aggregate amount
$8,119,799.00. In consideration for the transfer of the Properties, the
Dunham entities surrendered to American Spectrum shares of American
Spectrum 8% Cumulative Preferred Stock, Series B (the "Series B
Preferred"), with an aggregate liquidation preference of
$47,411,201.00, which amount is equal to the net contribution value at
which the Properties were originally contributed to American Spectrum.
Concurrent with the repurchase of the Properties, the parties agreed to
amend the charter documents of American Spectrum to modify the rights,
preferences and privileges of the Series B Preferred, the class of
equity security retained by Dunham. In addition, American Spectrum and
the Dunham entities modified a loan arrangement between American
Spectrum and the Dunham entities to eliminate the obligation of Dunham
to make or arrange additional loans to American Spectrum. Pursuant to
this loan arrangement, Dunham previously advanced $3,000,000.00 to the
American Spectrum entities on January 3, 2014. The obligation remains
ABOUT AMERICAN SPECTRUM REALTY, INC.
American Spectrum Realty, Inc. is a real estate investment company that
owns, through an operating partnership, interests in office, industrial,
retail, self-storage, RV parks, retail, multi-family properties and
undeveloped land throughout the United States. American Spectrum
Management Group, Inc., a wholly-owned subsidiary of the Company,
manages and leases all properties owned by American Spectrum Realty,
Inc. as well as for third-party clients totaling 10 million square feet
in multiple states. Website: www.americanspectrumrealty.com
FORWARD LOOKING STATEMENTS
Certain matters discussed in this release are forward-looking statements
that are subject to risks and uncertainties that could cause actual
results to differ materially from those projected, including the risks
and uncertainties of acquiring, owning, operating and disposing of real
estate. Such risks and uncertainties are disclosed in the Company's past
and current filings with the U.S. Securities and Exchange Commission.
American Spectrum Realty, Inc.
James Hurn, (713) 706-6200
Source: American Spectrum Realty, Inc.