FTE Networks released from some debt owed to preferred shareholders

Chicago, Nov. 12 – FTE Networks, Inc. announced an amendment to the debt and series H preferred stock with two preferred shareholders and that negotiations regarding previously disclosed possible business transactions are continuing, according to a press release.

As reported in the press release, the company and its affiliates were released from all but $28 million of remaining debt owed to Fred Sacramone and Brian McMahon, according to the notice, through the amendment to the debt and series H preferred stock.

On Oct. 11, FTE’s subsidiary Benchmark Builders, Inc. and certain other assets were foreclosed upon by the lenders under an amended and restated credit agreement from July 2.

In connection with the foreclosure, the company entered into a debt and series H preferred stock agreement with Sacramone and McMahon.

The remaining debt was to be automatically released and discharged as of Dec. 13 unless the company entered into a business combination transaction that allows the company’s stock to remain listed on a stock exchange on or before Nov. 10 and such a business combination transaction was consummated before Dec. 31.

On Nov. 8, the company and the debtholders entered into an agreement to extend the date by which a qualified business combination must be entered into to Dec. 31 from Nov. 10 and the date which such a combination must close was extended to Feb. 28, 2020 from Dec. 31.

As previously reported, on Oct. 11 FTE 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.

As part of the proposed transaction, the company would also acquire a public non-traded REIT with a portfolio of commercial development assets.

The company is also evaluating a second proposal which involves the contribution of a real estate portfolio of more than 3,000 rental home assets.

FTE Networks is a Naples, Fla.-based provider of services to the telecommunications and wireless sector.

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