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American Spectrum Realty Preferred Dividend Omission

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In Form 8-K filed on February 12, 2015, American Spectrum Realty, Inc. stated that on December 1, 2014, the Company failed to make a mandatory dividend payment in the aggregate amount of $66,904 to the holders of the Company’s 8% Cumulative Preferred Stock, Series B and has not subsequently made any further monthly mandatory dividend payments.

The failure to make the mandatory dividend payment was not cured within 30 days of December 1, 2014 and has not been cured, which constitutes an “Event of Default” under the Series B Articles Supplementary.

Additionally, on December 1, 2014, the Company failed to make a redemption payment in the aggregate amount of $3,010,686 to the Series B Holders, which remains uncured and will constitute an “Event of Default” if not cured within 90 days of December 1, 2014. Read more on distressed companies.