Delta Financial Corp. (DFC) Files for Bankruptcy Protection
Delta Financial Corp (NasdaqGM:DFC - News), a Long Island-based mortgage lender, said on Thursday it plans to file soon for bankruptcy protection, after losses mounted and an agreement to obtain new financing fell apart.
The Woodbury, New York, company also said it intends to stop taking mortgage applications, and it does not believe it can continue as a going concern.
Delta said its warehouse lenders have notified it of events of default under its financing agreements.
As a result, it expects to abandon plans to raise $100 million by selling senior notes and common stock to an affiliate of Angelo, Gordon & Co., one of its largest shareholders. That transaction would have given Angelo Gordon a majority stake.
The Woodbury, New York, company also said it intends to stop taking mortgage applications, and it does not believe it can continue as a going concern.
Delta said its warehouse lenders have notified it of events of default under its financing agreements.
As a result, it expects to abandon plans to raise $100 million by selling senior notes and common stock to an affiliate of Angelo, Gordon & Co., one of its largest shareholders. That transaction would have given Angelo Gordon a majority stake.
Labels: Delta Financial Corp., DFC
posted by Stock Administrator @ 11:22 AM
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