Altisource Asset Management Corporation Repurchases Preferred Shares in Global Settlement With Luxor Capital

Core Viewpoint - Altisource Asset Management Corporation (AAMC) has settled litigation with Luxor Capital Group, resulting in the surrender of Preferred Shares and a financial agreement that enhances the company's stockholders' equity [1][3]. Settlement Details - Luxor surrenders all 144,212 Preferred Shares, extinguishing all rights under the Securities Purchase Agreement and Certificate of Designations [2]. - AAMC will make a cash payment of $1,000,000 to Luxor, along with three promissory notes totaling$11,000,000, with varying due dates and interest rates [2]. - The promissory notes include $2,000,000 due in three years,$3,000,000 due in five years, and $6,000,000 due in eight years, with interest rates of 7.5$50,000,000 [2]. Legal and Financial Implications - The settlement leads to the dismissal of litigation with prejudice and mutual releases of claims, with no admission of liability by any party [3]. - As a result of the settlement, AAMC's stockholders' equity increases to over $6,000,000, allowing the company to avoid delisting from the New York Stock Exchange [3]. Company Overview - AAMC is a private credit provider focused on originating alternative assets to provide liquidity and capital to underserved markets [4].