AmBase Announces Judge Smith Ruling Regarding Federal Tax Reimbursement Pursuant To Settlement Agreement

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Jun 14, 2013, 01:24 ET

GREENWICH, Conn., June 14, 2013 /PRNewswire/ -- AmBase Corporation ("AmBase" or the "Company") (OTC: ABCP) announced that pursuant to Senior Judge Smith's order filed June 12, 2013, on the Company's Rule 60(b) Motion as filed with the Court of Federal Claims, the United States has been directed to pay AmBase $500,729 as reimbursement for 2012 federal income taxes paid by AmBase as provided for in the Settlement Agreement.

Pursuant to the Company's May 3, 2013, Rule 60(b) Motion, the Company is also seeking reimbursement for the applicable tax consequences relative to the reimbursement amount and is: (i) reserving the right to seek a tax gross-up for any additional federal tax which could be owed as a result of additional taxes which may be imposed by the IRS upon tax return review or otherwise; and (ii) is reserving the right to seek the economic value for deductions utilized against any income relating to the Settlement Agreement. Pursuant to the Settlement Agreement, Rule 60(b) of the Rules of the Court of Federal Claims will govern the process for receiving a tax gross-up.

At oral argument, Senior Judge Smith indicated that he expected that an additional ruling would follow with regard to several of the other issues raised in the Company's Rule 60(b) Motion addressing tax matters under the Settlement Agreement.

SOURCE AmBase Corporation