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American Spectrum Realty, Inc. Announces Subsidiaries’ Successful Emergence from Chapter 11

July 30, 2014



HOUSTON--(BUSINESS WIRE)-- American Spectrum Realty, Inc. (the “Company”) (NYSE/MKT: AQQ) - a real estate investment, management and leasing company - announced the approval of a Joint Plan of Reorganization ("Plan") for three of its subsidiaries, ASR-8 Centre LP, ASR-Parkway One & Two LP, and ASR-Fountainview Place LP (the "Subsidiaries"). The Subsidiaries filed voluntary petitions for reorganization in response to foreclosure proceedings instituted by creditors of debt secured by the Subsidiaries’ assets, consisting of four real property assets, in order to preserve the value of the assets which the Company believed to be in excess of the outstanding secured debt.

The loans on the four assets were acquired in 2013 by a private equity firm. The private equity firm initiated foreclosure proceedings which would have eliminated the substantial equity in the properties and the ability of the Subsidiaries to pay their vendors and other lien holders. The chapter 11 proceeding successfully stayed the attempt until an arrangement was reached to pay all creditors. During the pendency of the bankruptcy proceedings, the Company completed the sale of the property held by ASR-Fountainview Place and restructured the indebtedness secured by the assets of the other Subsidiaries. The Plan will pay all creditors (including vendors) in full.

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.asrmanagement.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

General Counsel

jhurn@americanspectrum.com

Source: American Spectrum Realty, Inc.


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Source: Business Wire


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