SAN DIEGO, Sept. 30, 2016 /PRNewswire/ -- Pursuant to the Plan of Liquidation approved by shareholders on January 17, 2013, the Board of Trustees of Accredited Mortgage Loan REIT Trust ("Accredited REIT") has declared the final liquidating distribution to the holders of its 9.75% Series A Perpetual Cumulative Preferred Shares in the aggregate amount of $8,023,609, representing $1.96 per preferred share outstanding. The final liquidating distribution will be paid on October 28, 2016, to holders of record of its preferred shares as of the close of business on October 14, 2016. Upon completion of this final liquidating distribution, Accredited REIT will have distributed an aggregate of $78,639,554 or $19.21 per share, to its preferred shareholders since confirmation of the Fifth Amended Chapter 11 Plan of Liquidation ("Fifth Amended Plan") approved on May 24, 2011, by the U.S. Bankruptcy Court for the District of Delaware in the matter styled In Re: Accredited Home Lenders Holding Co., et al., Case No. 09-11516.
Accredited REIT has now received all distributions due to it under the Fifth Amended Plan. Further, in accordance with its Plan of Liquidation, effective May 20, 2016, Accredited REIT sold substantially all of its remaining assets for $6.1 million in cash and relief of approximately $2.3 billion in associated liabilities. This transaction resulted in federal income tax liability attributable to alternative minimum tax on the gain on sale. The final liquidating distribution represents all cash remaining available to shareholders after the payment of taxes and all other obligations of Accredited REIT. Therefore, no further distributions will be made.
Following the final liquidating distribution, Accredited REIT will file a notice of termination with the Maryland State Department of Assessment and Taxation. Effective on the filing of the notice, the existence of Accredited REIT will terminate under Maryland law. There is no requirement for shareholders to surrender stock certificates in connection with the final liquidating distribution or the termination of Accredited REIT.
The Board of Trustees expresses its appreciation to those shareholders who supported Accredited REIT and the Board during the liquidation process. The Board believes that, as a result of the patience of shareholders in permitting an orderly liquidation process, the more than $78.6 million in aggregate liquidating distributions far exceeds the amount which could otherwise have been achieved.
Accredited Mortgage Loan REIT Trust, a subsidiary of Accredited Home Lenders Holding Co., is a Maryland real estate investment trust that was formed in May 2004 for the purpose of acquiring, holding and managing real estate assets. Statements regarding future events constitute forward-looking statements within the meaning of the federal securities laws. Such statements are based on current expectations, and the actual results and the timing of certain events could differ materially from those contemplated by these forward-looking statements.
CONTACT: Mark Chevallier, McGuire, Craddock & Strother, P.C., + 1-214-954-6800
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SOURCE Accredited Mortgage Loan REIT Trust