FTE Consents to Foreclosure on Benchmark Builders Reduces $80 Million in Debt & Considers New Business Combination
NEW YORK, Oct. 15, 2019 (GLOBE NEWSWIRE) -- (NYSE American: FTNW) (“FTE” or the “Company”), announced that senior lender Lateral Investment Management LLC (“Lateral”) took possession and ownership of FTE’s principal subsidiary Benchmark Builders by means of a strict foreclosure citing certain events of default caused by certain judgements entered into by convertible note holders.
As more fully described in the Company’s Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on October 11, 2019, the Company consented to this foreclosure proposal which provided for total debt relief equal to in aggregate more than $80 million. This debt relief was an instrumental part of the Company’s decision to agree to the proposed foreclosure terms as the Company was determined to be over leveraged.
The Company has also received a term sheet concerning a proposed business combination transaction contemplating the contribution of a multi-billion dollar real estate asset portfolio in exchange for a combination of securities issued by the Company to be agreed upon by the asset contribution party. The Company has also been in discussions as to additional real estate assets to be contributed prior to the close of the business combination transaction or after. As part of the proposed transaction, the Company would also acquire a public non-traded REIT with a portfolio of commercial development assets, further to its strategy to both incorporate a REIT structure into the Company and to enter into the independent broker dealer channel alternative asset sector. In addition to the contribution of assets, the proposing company intends to bring an experienced management team to the Company.
The total debt relief under the foreclosure proposal would increase to more than $108 million if the proposed business combination is not consummated prior to December 31, 2019.
The Company is in discussions with board candidates to replace three board members who resigned following the foreclosure proposal. As discussed in the Company’s shareholder letter dated September 12, 2019, the Company has been expending significant efforts on many fronts to explore various strategic alternatives that would improve the Company's long-term financial health and operational effectiveness.
About FTE Networks, Inc.
FTE Networks, Inc. (“FTE”) through its subsidiaries Crosslayer and Juscom divisions provide technology solutions for smart building platforms, edge computing and network infrastructure solutions for residential and commercial properties. We create transformative smart platforms and buildings. FTE’s services are predicated on smart design and consistent standards that reduce deployment costs and accelerate delivery of leading edge projects and services. The Company works with Fortune 100/500 companies, including some of the world’s leading Telecommunications and IT Services Providers as well as REITs and Media Providers.
Forward-Looking Statements
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For more information, please contact:
Corporate Contact:
FTE Networks, Inc.
237 W. 35th Street, Suite 601
New York, NY 10001
(877) 850-4308
NYSE American: FTNW
