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SPRINGFIELD, Ohio, April 08, 2019 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- HUTN Inc. (HUTN) today announced the resignation of Christopher Daniels from the Board of Directors, following Daniels’ resignation last month as CEO and interim CFO. The Company’s financial restructuring efforts are continuing with the goal of attempting to stabilize the Company’s financial condition while the Board of Directors considers strategic alternatives to include a merger partner or sale of selected Company assets or subsidiaries. The previously announced offer whereby designated unsecured creditors could exchange debt for Company stock has been withdrawn.
The Company has ceased normal operations and embarked on efforts to identify potential merger partners and/or acquirers for selected Company assets, and to attract additional tenants for the Company’s One Main Street property. In parallel, the Company is in discussions with both PS Funding, which holds a $4.65 million mortgage on the Company’s building at One Main Street, Springfield Ohio, and Spring Forward which holds a $7.5 million unsecured Note from the Company about restructuring both those obligations and curing its current defaults under them. There is no assurance that these efforts will be successful. A default by the Company's subsidiary, HUTN Group Inc., on certain Notes held by JP Morgan was satisfied by collateral provided under a personal guaranty by the Company’s Chairman.
The Board is currently seeking candidates to serve as acting CEO while a replacement for Daniels is found. The Board has agreed to accept a loan from its Chairman to be used to pay certain past due obligations and to provide interim funding to the Company during this restructuring period.
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