UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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8.01 Other Events.
On December 31, 2021, Exela Technologies, Inc. (the “Company”) reached an agreement to settle the appraisal action case described under Item 1. Legal Proceedings in its most recent Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2021 (filed with the Securities Exchange Commission on November 8, 2021), together with all related cases filed by the appraisal petitioners seeking to enforce the appraisal judgment and other claims relating to their investment in the Company’s subsidiary, SourceHOV Holdings, Inc.
Under the terms of the settlement, the Company's subsidiary agreed to pay or cause to be paid to the appraisal petitioners $63.4 million, plus interest, consisting of cash and cash equivalents with payments expected to be completed by April 15, 2022. The settlement provides for the full release of all parties upon receipt of the payments and subject to customary conditions.
Management believes this settlement is in the best interests of the Company, as, among other things, it enables the Company to settle the payment of the appraisal litigation and focus on its business.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: January 4, 2022
| EXELA TECHNOLOGIES, INC. | ||
| By: | /s/ Erik Mengwall | |
| Name: Erik Mengwall | ||
| Title: Secretary | ||
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