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Tuesday, March 17, 2009

Thornburg Mortgage may file bankruptcy

by Calculated Risk on 3/17/2009 03:40:00 PM

From Reuters: Thornburg Mortgage may file Chapter 11 bankruptcy

Thornburg Mortgage ... a large and troubled provider of "jumbo" mortgage loans, on Tuesday said it may file for Chapter 11 bankruptcy protection.
...
A bankruptcy filing would make Thornburg one of the largest U.S. mortgage providers to seek protection from creditors since the housing slump began ...

Thornburg has specialized in making mortgages larger than $417,000 to borrowers with good credit ...

Last March, Thornburg arranged a $1.35 billion bailout from the distressed debt investor MatlinPatterson Global Advisors LLC and other investors to stay out of bankruptcy.

According to a Tuesday regulatory filing, MatlinPatterson surrendered all of its Thornburg common stock -- 120.8 million shares -- on March 12 and 16 without any compensation. ...
We're all subprime now!