American Spectrum Realty Inc. filed a plan of liquidation with related disclosure statement in the US Bankruptcy Court on January 11, 2016. As per the plan filed, administrative expenses of $0.04 million, US Trustee fees, professional compensation of $1.28 million, DIP Facility claims of $0.5 million, priority non-tax claims of $0.18 million, priority tax claims of $0.46 million, priority tax claims-disputed comprising of Internal Revenue Service, Harris County Clerk, State Comptroller and Secured Claim of Indiana Department of Revenue will be paid in full in cash. Secured Claim of Casa Bandera Investors, LLC, Casa Bandera TIC 13, LLC, Crown Energy Services, Inc. and Crown Building Maintenance, Inc., First Insurance Funding Corp., PPC Irvine Center Investment, LLC and William J. Carden are disputed and if established will be paid in cash.

General unsecured claims of $15 million will be paid $0.6 million or 5% whichever is less. General unsecured claims of Dunham Funds of $22.12 million will be paid in cash on a pro rata basis. Common stock holders, Series A and C preferred stock holders will be cancelled.

Series B preferred stock holders will be cancelled and will receive cash distribution. The plan will be funded by cash in hand and sale of assets.