AmBase Announces Signed Settlement Agreement in Supervisory Goodwill Legal Proceedings
GREENWICH, Conn., Aug. 31, 2012 /PRNewswire/ -- AmBase Corporation ("AmBase" or the "Company") (OTC: ABCP) is pleased to announce that there is a signed settlement agreement in the Supervisory Goodwill legal proceedings between AmBase, the Federal Deposit Insurance Corporation–Receiver ("FDIC-R") and the Department of Justice ("DOJ") on behalf of the United States of America (the "United States") (the "Settlement Agreement").
The Settlement Agreement provides for the payment by the United States directly to AmBase of $180,650,000 (one hundred and eighty million, six hundred and fifty thousand dollars) along with a federal tax gross-up, and includes other terms as set forth in the Settlement Agreement. The Settlement Agreement is subject to approval by the United States Court of Federal Claims (the "Court of Federal Claims). The payment of the Settlement Agreement proceeds by the United States to AmBase is to be paid in a lump sum pursuant to a timetable as provided for in the Settlement Agreement.
The Board of Directors of AmBase is considering a plan, which is subject to various economic, financial, business, tax, accounting, regulatory, legal and administrative considerations, to declare and pay a special cash dividend of between $1.50 and $2.00 per share of common stock possibly prior to the end of calendar year 2012.
A copy of the executed Settlement Agreement is provided with the Company's Form 8-K as filed with the Securities and Exchange Commission.
The Company also announced that the Company's Board of Directors has appointed Ms. A. Halloran to the Company's Board of Directors, effective as of August 31, 2012. Ms. A. Halloran was also appointed as a member of the Company' Accounting and Audit Committee.
Ms. A. Halloran is to be paid a director's fee to be commensurate with the Company's policy for Compensation of Directors as set forth in the Company's 2012 Proxy Statement as filed with the Securities and Exchange Commission as of March 29, 2012. Currently, each director of the Company is paid an annual fee of $9,000. In addition each Chairperson and/or Co-Chairperson of a Board committee is paid an additional fee of $1,000 per year and after four (4) Board and/or committee meetings, each director is to be paid a $500 per meeting attendance fee. Pursuant to the Company's By-Laws, directors may be compensated for additional services for the Board of Directors or for any committee at the request of the Chairman of the Board or the Chairman of any committee.
Ms. A. Halloran is a managing member of BARC Investments, LLC, which currently owns 16,000,000 shares of AmBase Corporation common stock. Ms. A. Halloran is the daughter of Mr. Richard A. Bianco, the Company's Chairman, President and Chief Executive Officer.
SOURCE AmBase Corporation