HOUSTON—American Spectrum Realty, Inc. says it has reached a settlement that will allow Dunham & Associates Holdings and its affiliates to repurchase fourteen properties from American Spectrum.
The settlement stems from an action it field against filed by American Spectrum in the District Court of Harris County, Texas.
The parties valued the properties at an aggregate value of $55.5 million and the Dunham entities assumed debt on the properties in the approximate amount of $8.1 million. In consideration for the transfer of the properties, the Dunham returned to American Spectrum shares of American Spectrum stock valued at about $47.4 million which is equal to the net contribution value at which the Properties were originally contributed to American Spectrum.
The firms also 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. Dunham previously advanced $3 million to the American Spectrum entities on January 3, and that obligation remains outstanding.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
