Newport Beach, CA, PRNewswire/ CV Holdings, Inc. (Other OTC: CVHL) (the “Company”) reported that it has retired the entire outstanding amount of its Mandatorily Redeemable Senior Preferred Stock held by an institutional investor related to its non-performing loan (NPL) business. The Company paid a total of $1,779,746, consisting of $1,675,000 of principal and $104,746 of accrued interest.
The Company also retired (at a discount) the entire outstanding amount of its perpetual Series A Preferred Stock, issued at the time of its acquisition of ClearVue Management (“ClearVue”), in a negotiated transaction with the previous stockholders of ClearVue, as part of a corporate governance realignment, as further described below. The Company entered a contract to pay a total amount of $1,500,000, plus a contingent payment of up to $300,000 based on achieving certain performance criteria, to retire the remaining outstanding shares of Series A Preferred Stock with an aggregate par value of $3,808,573, including accrued dividends. An initial payment of $375,000 was made on May 5, 2017 with the remaining payment of $1,125,000 due by December 31, 2018. As part of this transaction, and consistent with the Company’s business plan to focus on its growth strategy in various new finance businesses, the Company realigned its board of directors to include only the current Co-CEOs and the representative from Tricadia Capital Management (“Tricadia”). Prior directors were related exclusively to the Company’s NPL business unit and will continue to head such business unit, but no longer will be members of the Company’s board effective as of May 5, 2017. This corporate governance realignment ensures consistency and focus for all heads of the Company’s various business units, while keeping senior and investor representation unchanged at the board of directors’ level.
The Company also announced that effective, June 8, 2017, Jonathan Harmer, the Company’s current CFO will leave the Company in pursuit of other opportunities. The Company will promote two of its senior finance professionals, John De Mata and Bill Wang, to the roles of Senior Vice President – Chief Accounting Officer and Senior Vice President – Finance, respectively, to perform the CFO duties and does not currently intend to designate a formal replacement to fill such vacancy.View PDF