 CHRISTIANSTED, U.S. Virgin Islands, Aug. 14, 2020 GLOBE NEWSWIRE -- Altisource Asset Management Corporation AAMC or the Company NYSE American: AAMC today announced financial and operating results for the second quarter of 2020. AAMC also announced that, on August 13, 2020, it entered into a Termination and Transition Agreement the Termination Agreement with Front Yard Residential Corporation Front Yard, pursuant to which, following a transition period of not more than 180 days to ensure a smooth internalization and the transfer of certain employees and assets to Front Yard, the Amended and Restated Asset Management Agreement the Amended AMA with Front Yard will be terminated. As consideration for the termination of the Amended AMA, AAMC will receive 1 a termination fee of approximately 46.0 million, 2 8.2 million for the transfer of certain assets and subsidiaries of AAMC to Front Yard and 3 continued base management fees through the date that Front Yard delivers written notice to AAMC that the transition has been satisfactorily completed. Of these amounts, AAMC will receive 18.2 million in cash within 2 business days of entering into the Termination Agreement and 36.0 million upon the successful completion of the transition period under the Termination Agreement, of which up to 21.0 million may be paid at the option of Front Yard in either cash or Front Yard common stock. AAMC will retain certain assets, key employees and subsidiaries to continue to build out its asset management businesses focused on the origination and underwriting of short duration construction loans backed by single-family rental homes as well as other new business initiatives. As part of the termination, AAMC has agreed to reinstate George Ellison and Robin Lowe as Co-Chief Executive Officer and Chief Financial Officer, respectively, of AAMC during the transition, and Mr. Ellison has stepped down as Chairman of AAMCs Board of Directors effective immediately and agreed to resign from the Board of Directors and as Co-Chief Executive Officer of AAMC shortly before the transition is completed.Second Quarter 2020 Highlights and Recent Developments Increased Front Yards rental revenues to 55.1 million for the second quarter of 2020, up 1.5 over the first quarter of 2020 and up 6.9 year on year. Managed continued improvement in Front Yards operating metrics, yielding its best yet quarterly operational results. Advised Front Yard in the sale of 30 non-core homes for a 0.3 million gain over carrying value. Negotiated the settlement by Front Yard, at the direction of the board of directors of Front Yard, to terminate the previously announced merger agreement with Amherst Residential, LLC Amherst, providing Front Yard with up to 100 million of additional liquidity. Negotiated and executed the Termination Agreement with Front Yard on terms resulting in payments to AAMC of over 54 million plus management fees through the date that Front Yard delivers written notice to AAMC that the transition has been satisfactorily completed. Further developed new business opportunities for AAMC, targeting market dislocation opportunities. Secured a firm, non-binding commitment of a 20.0 million investment from a strategic investor for a fund formed by AAMC focused on, among other things, the origination and underwriting of short duration construction loans for the single-family rental market.We are pleased by the continued improved and strong operational performance of Front Yard in the second quarter under our management, stated Indroneel Chatterjee, Co-Chief Executive Officer. We also have made continued progress in the design, development and organization of new business opportunities for AAMC, as we are targeting market dislocation in real estate-backed loans and fixed income bonds, mortgage-related securities, government-sponsored mortgage and construction loans and mortgage servicing rights. The Termination Agreement with Front Yard, which is on terms favorable to both AAMC and Front Yard stockholders and allows AAMC to reduce the operating costs associated with providing services to Front Yard under the Amended AMA following the transition period, and the 20.0 million firm investment commitment in our new fund mark significant milestones for our company.Second Quarter 2020 Financial ResultsAAMCs net loss for the second quarter of 2020 was 7.8 million, or 4.81 per diluted common share, which included a 5.3 million change in the fair value of its shares of Front Yard common stock, compared to net income of 3.3 million, or 1.81 per diluted common share, which included a 4.8 million change in the fair value of its shares of Front Yard common stock, for the second quarter of 2019.AAMCs net loss for the six months ended June 30, 2020 was 11.6 million, or 7.17 per diluted common share, which included a 5.9 million change in the fair value of its shares of Front Yard common stock, compared to net income of 2.4 million, or 1.34 per diluted common share, which included a 5.7 million change in the fair value of its shares of Front Yard common stock, for the six months ended June 30, 2019.About AAMCAAMC is an asset management company that provides portfolio management and corporate governance services to investment vehicles. Additional information is available at details on the Termination Agreement can be found in the Companys Current Report on Form 8-K that will be filed with the Securities and Exchange Commission the SEC and, when available, will be viewable on the SECs website StatementsThis press release contains forward-looking statements that involve a number of risks and uncertainties. Those forward-looking statements include all statements that are not historical fact, including statements about managements beliefs and expectations. Forward-looking statements are based on managements beliefs as well as assumptions made by and information currently available to management. Because such statements are based on expectations as to future economic performance and are not statements of historical fact, actual results may differ materially from those projected. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to: AAMCs ability to implement its business strategy and the business strategy of Front Yard; risks associated with the termination of AAMCs asset management agreement with Front Yard, including the potential effects that the termination can have on our new business initiatives, results of operations and financial condition; AAMCs ability to successfully complete the transition period under the Termination Agreement; AAMCs ability to retain key employees; AAMCs ability to develop and implement new businesses or, to the extent such businesses are developed, its ability to make them successful or sustain the performance of any such businesses; AAMCs ability to retain and maintain its strategic relationships; AAMCs ability to obtain additional asset management clients; the potential for the COVID-19 pandemic to adversely affect AAMCs business, financial position, operations, business prospects, customers, employees and third-party service providers; AAMCs ability to effectively compete with its competitors; Front Yards ability to complete future or pending transactions, which could affect AAMCs management fees; the failure of AAMCs service providers to effectively perform their obligations under their agreements with AAMC; AAMCs ability to integrate newly acquired rental assets into Front Yards portfolio; AAMCs ability to effectively manage the performance of Front Yards internal property manager at the level andor the cost that it anticipates; developments in the litigations regarding AAMCs redemption obligations under the Certificate of Designations of its Series A Convertible Preferred Stock the Series A Shares, including AAMCs ability to obtain declaratory relief confirming that AAMC was not obligated to redeem any of the Series A Shares on the March 15, 2020 redemption date since AAMC did not have funds legally available to redeem all, but not less than all, of the Series A Shares requested to be redeemed on that redemption date; AAMCs failure to maintain Front Yards qualification as a REIT; general economic and market conditions; governmental regulations, taxes and policies and other risks and uncertainties detailed in the Risk Factors and other sections described from time to time in the Companys current and future filings with the Securities and Exchange Commission. The foregoing list of factors should not be construed as exhaustive.The statements made in this press release are current as of the date of this press release only. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, whether as a result of new information, future events or otherwise. 