(1888PressRelease)
April 07, 2009 - The lender’s remaining assets will be sold or liquidated to pay bondholders and creditors, and the firm will then discontinue operations, according to a statement today from the Santa Fe, New Mexico-based company.
Soloman Mckinley Chairman, James Waters, said “Thornburg specialized in mortgages of more than $417,000, typically used to buy more expensive homes. The firm started running short of cash in August 2007 as foreclosures nationwide headed toward new highs and investors became leery of assets backed by home loans. Thornburg lined up new backers including MatlinPatterson Global Advisers LLC, which became the company’s biggest shareholder.”
Waters went on to say “MatlinPatterson returned its stake earlier this year and warned on March 17 that a Thornburg bankruptcy was likely.”
Eight investment firms including JPMorgan Chase Funding Inc. and Citigroup Global Markets Limited agreed to delay their demand for payments from Thornburg through April 30, according to the statement. In return Thornburg will allow additional sales of loans held by the counterparties, with proceeds used to reduce the company’s debt.
Thornburg has also agreed to transfer its mortgage-servicing rights to the investment firms, the company.
The outspoken Soloman Mckinley Chairman finished his comments by saying “Their dissolution was created by one issue, the inability to support the equity requirements for financing their mortgage securities portfolio, given the continued decline in mortgage backed securities prices.”
Working alongside Industry leaders Soloman Mckinley Associates recognizes the dramatic need for major changes, with a passionate commitment to business growth. Soloman Mckinley Associates provides a full range of integrated services and products simultaneously directed at producing strategically predetermined business and cultural results. We bring together a broad range of talent and resources with a passion for integrity, continuous improvement and the desire to make a difference. This results in prosperity for our customers, society and ourselves.
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