End of the Road at Thornburg
Ultra-prime jumbo mortgage lender Thornburg Mortgage (THMR), which fell victim to the nation's credit crises in the past 18 months, looks as if it has run out of its proverbial nine lives. The Santa Fe, New Mexico-based company said Wednesday that it expected to file for Chapter 11 bankruptcy protection as it begins the liquidation of its remaining assets. For Thornburg, today's pronouncement likely represents a bitter end for a company that fought long and hard to remain afloat amid deteriorating market conditions. The company found itself in violation of numerous convenants on various credit facilities with the likes of UBS AG (UBS) and JP Morgan Chase & Co. (JPM), and said that its creditors had agreed to forbear demanding payment under deficiency claims, but said that its various creditors would begin to seize collateral ahead of any bankruptcy filing by the company. Thornburg will also transfer mortgage servicing rights back to respective creditors, the company said in a statement. "[Thornburg] intends to commence an orderly sale or liquidation of its remaining assets assisted by Houlihan Lokey Howard & Zukin Capital, Inc. in order to maximize any remaining value for its bondholders and creditors," the statement read. "Once these sales or liquidations are completed, the company will discontinue operations." Write to Paul Jackson at firstname.lastname@example.org.