American Spectrum Realty, Inc. (NYSE MKT: AQQ) – a real estate
investment, management and leasing company – today announced a recent
court filing in the Southern District of Texas as negotiations regarding
three loans pertaining to four Houston commercial properties broke down
with a private equity firm, which acquired the loans from the original
lender.
Three of American Spectrum Realty wholly-owned subsidiaries, which own
four real property assets, filed bankruptcy petitions under Chapter 11
of the United States Bankruptcy Code. All of these properties have been
posted for foreclosure. The three subsidiaries are ASR-8 Centre LP,
ASR-Parkway One & Two LP and ASR-Fountainview Place LP. The docket
number for the jointly administered filings is Case No. 14-30174.
Company management initiated this preemptive move to protect the rights
of investors and creditors. The mortgages on these properties were
acquired from the original lender, a Texas bank, in September 2013 by a
private equity firm, which then attempted to foreclose on the assets.
American Spectrum Realty management was unsuccessful in restructuring
the loans in a short time frame subsequent to the private equity firm’s
acquisition of the loans. Thus, management had no alternative but to
preserve shareholder equity in these projects other than to take legal
action.
American Spectrum Realty strongly contends that these assets have value
in excess of the mortgages and other property payables. Discussions with
the private equity firm did not produce a time frame in which the
Company could comfortably unlock what it believes to be the inherent
value in the properties. Consequently, the bankruptcy petitions were
filed in a move to preserve current value and realize full potential
value through either a plan of reorganization or orderly marketing and
sale while American Spectrum Realty maintains control of the asset
management and property management duties.
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,
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. American Spectrum Management Group, Inc. provides
first-class management and leasing services for office, industrial,
retail, self-storage, student housing and multi-family properties
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.
Copyright Business Wire 2014