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i afraid i investment up the creek with out a paddle.
Karen Chang's e-mail does not work and tried to ask her the following:
Dear Ms. Chang,
Reading the current SEC & press releases, what exactly does the following statement mean for us regular people who have invested and held the LUMC stock throughout all the last years' events? :
""The Company does not expect any value to be available to the existing common stock holders or subordinated creditors and it does not expect them to share in the ownership of the newly reorganized company.""
Please tell me it does not mean all our hard earned monies we put away for our retirements and long range family plans has gone down the drain because of the new arrangement your organization has made...
Regards,
Monday, September 08 2008 10:48 AM, EST
--------------------------------------------------------------------------------
Luminent Files Chapter 11 Bankruptcy Petition
PR Newswire "US Press Releases "
PHILADELPHIA, Sept. 8 /PRNewswire-FirstCall/ -- Luminent Mortgage Capital, Inc. (OTC Bulletin Board: LUMCE) announced today that it and its wholly-owned subsidiaries (collectively, the "Companies") on September 5, 2008, filed for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Maryland, Baltimore Division. Immediately prior to the filing, the Companies executed a Plan Support and Forbearance Agreement (the "Agreement") with its secured creditor, Arco Capital Corporation, Ltd. ("Arco"), WAMU Capital Corp. and convertible noteholders representing 100% of the outstanding principal amount of its convertible notes. Under the Agreement, each of the parties thereto has agreed to vote in favor of a Chapter 11 plan of reorganization for the Companies containing terms specified in the Agreement (the "Plan"). Under the Agreement, the Plan is required to provide for the cancellation of all outstanding common and preferred shares in the Companies, the cancellation of all subordinated debt instruments, and for the distribution to allowed unsubordinated general unsecured creditors (including the Companies' convertible noteholders, but excluding Arco and its affiliates) of 41% of the common stock of the reorganized Companies and $2.75 million. The Agreement contemplates that the Companies will fund the cash portion of the distribution to unsubordinated general unsecured creditors by issuing preferred stock to Arco or its designees. The Agreement also commits Arco to provide, subject to terms and conditions, including adherence to an operating budget, the Company with up to $3.2 million in debtor-in-possession financing and up to $2.8 million in post-confirmation financing.
The Company does not expect any value to be available to the existing common stock holders or subordinated creditors and it does not expect them to share in the ownership of the newly reorganized company.
"The decision to file for Chapter 11 bankruptcy relief was made by the board of directors only after careful consideration of the alternatives available to the Company," said Zachary H Pashel, President and Chief Executive Officer. "The dramatic disruptions in the mortgage industry resulted in significant declines in the value of the Company's mortgage assets. Although we made progress, we do not have sufficient cash flow to satisfy the Company's legacy liabilities. The Plan Support and Forbearance Agreement represents the most equitable arrangements possible under the circumstances and provides for some recovery for the majority of our creditors. In addition, the Agreement provides for financing that we expect to be sufficient both to complete the Chapter 11 process and to provide a runway for the implementation of the Companies' post-confirmation business plan."
Peter S. Partee, Sr. of Hunton & Williams LLP's New York office serves as lead restructuring counsel to the Companies in connection with their Chapter 11 cases.
Safe Harbor Statement
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on various assumptions and events that are beyond the Company's control and may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "likely," "should," "could," "anticipate," "intend" or similar terms or variations on those terms or the negative of those terms. The Company bases its forward-looking statements on management expectations. Actual results may differ materially as a result of several factors, including, but not limited to:
-- the Company's intention to access debtor-in-possession financing;
-- the Company's ability to negotiate equitable settlements with
creditors;
-- the Company's intention to form a new corporate structure for asset
management business.
These statements are qualified by important factors that could cause actual results to be materially different from those reflected in the forward-looking statements and may be effected by both creditors and the U.S. Bankruptcy court's actions.
The Company cautions you not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this press release. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
Contact:
Karen Chang
Senior Vice President &
Chief Financial Officer
Phone: (215) 564-5900
Email: ir@luminentcapital.com
SOURCE Luminent Mortgage Capital, Inc.
i agree with that. i like the old site. there was nothing wrong with it. it cost lot of money to built a new site.
Unsure, but if they were planning on going out of business. They don't need a new website.
Well, frankly I'm clueless about the "Money" question!
This link has been updated;
http://www.luminentcapital.com/?prvtof=8b2VkUqfXDCVzkFHoAJjMi5d41E9khsCceLs0s1kuFhPLVphu7A5LMtXNy7TEJg1F1PiLKTnrhoGnms4e4JfDsHJeG0%2FxzJbvlDNDjM3qAjJkReyPtFuhjq9dI%2BcM12VT2ONs4wV4Tz%2FHpFFaj4Df1bGqS7rxHHdbRa%2B2AANzYkpdYau2b%2B5rYeO64gKU8OlZvLkXGGjNpdaJOLprlmQ6hiwece576e9zNT3Y4KOSTSc%2FXsg9dHs
wow sounds good! where are they going to get the money to do
all this ?
what do you think this means?
They are working on a new website;
http://www.luminentcapital.com/phoenix.zhtml?c=142466&p=irol-IRHome
Still here, just got home.
08/25/2008
Q2 2008 Luminent Mortgage Capital Earnings Release - Estimate: --
Reuters / Market Edge
Great Lee - thanks for the clarification
they add the "E" for not filing the 10Q, just like they add the Q for bankruptcy. It will be removed when they file their 10Q.
Other than that it still trades on the BB board.
We are now LUMCE? Why did we move from LUMC?
Good to see you I-man, you think the financials will be out monday? Do you have a link? Just wondering where/how you arrived at that conclusion.
Monday delayed financials to come out and my GTC Limit orders of past have been filled as LUMC has technically showm a bottoming. Now they need to show positive changes Monday amongst the ongoing national debt crisis in major banking and this stock will move up rapidly from these low levels it has been sitting at for a while; same thing happening to many companies for various reasons today.... Long term can be a massively profitable venture with this firm but don't expect instant overnight gratification which is what affected everything from real estate to banking and the whole US economy for too long (excessive greed without basis), as we watch these historical times occur and a balance and new paradigm take over and my faith in LUMC is more positive long term than negative here...
Yes, the junior note holders this time. That takes care of all the note holders. If Luminent doesn't make it they probably won't get a dime.
Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement.
On June 16, 2008, Luminent was obligated to make a quarterly interest payment of approximately $0.7 million applicable to $41.2 million of Luminent's junior subordinated notes dated December 15, 2005. Luminent did not make this payment and a payment default under the indenture has occurred. Luminent was unable to meet the obligation before July 16, 2008, the expiration of the 30 day grace period to cure the payment default. On August 15, 2008, Luminent received a demand letter for payment from the junior subordinated notes indenture trustee declaring the notes to be immediately due and payable in an amount of approximately $41.2 million plus accrued interest of approximately $1.2 million.
http://biz.yahoo.com/e/080819/lumc.ob8-k.html
All the new players are still with them.
why are player on company keep changing. they hire some body and then then resign.
Unsure, only time will give us the answer.
is all lost at this time or what?
Hard to have any discussion on Yahoo at this point. The insiders keep changing on Luminent's website.
have they jump out?
Morgan Stanley & Co. Inc. jumped in and bought 175,865 shares recently.
http://www.luminentcapital.com/phoenix.zhtml?c=142466&p=irol-ownershipsummary
I understand, good to hear from you!
Yeah, I'm here. Not sure where to go...I'd like to find out where this is going to go and then get out and buy GOLD!!
Is the Housing bottom in?
http://www.marketwatch.com/news/story/pending-home-sales-index-rises/story.aspx?guid=%7B45D708B4%2DCD32%2D40F4%2D9603%2D232B3B9DF723%7D&dist=hplatest
WASHINGTON (MarketWatch) -- In a sign that the U.S. housing market may strengthen in coming months, an index of sales contracts on previously owned U.S. homes rose 5.3% in June from the prior month, the National Association of Realtors reported Thursday. The index, which is considered a leading indicator of existing home sales, was down 12.3% from the June 2007 level. Pending home sales in June rose in all regions, with a gain of 9.3% in the South, 4.6% in the West, 3.4% in the Northeast and 1.3% in the Midwest. The May pending home sales index was revised to a decline of 4.9% from the prior estimate of a 4.7% drop
Yeah - I caught that. Maybe Acro declared a default and is sitting on the sidelines and LUMC is cleaning up all other debts through defaulting and settling for less.
lol, we had a new 8k filing today. The only thing new that I see was the default of 1.3 million on Aug 1st. Four different filings for that? Way to much paperwork in this game.
Yes - very interesting day yesterday. I think we got them good though
After today it's easy to appreciate the tranquillity and order of i-hub............lol
A lot of these oversold mortgage companies are starting to find a footing...
Indeed, low volume and rather large moves. When we were trading @ .65 Zacks put out a six month price target of .30!
The questions that remain are, will Arco exercise @.18, will they complete the restructuring in progress? If so, we will knock the socks off the chart.........:) Hey, if anything it's worth nibbling on at this price. I hold for the outcome.
I believe the next leg is on the otherside of .135!
Interesting move she is trying to make here...
It's gonna be a nice to have company shares at this $ range!
We could use many more days like today. We need some good news on the restructuring.
Have they ran out of portfolio to sell or they dont
want and or is it unnecessary
Point taken..Thanks guys. Have a great weekend
if they can not carry on, it dead.
My concern is not earnings but the restructuring that is needed. Earnings at this point is not the answer. We need to know they have the ability to carry on.
Yes - I have been very tempted to avg down again, escepcially at these prices. I know there is nothing official, but do you think the will release on 8/11?
Yes, just not much to do but wait. Doing a little clean up work on some other stocks that I exposed to the SEC some time ago on I-hub.
Can they Lumc make this happen is the question? If not I will have some expensive wallpaper..........lol.
Lee - are you still around? you have been quiet for almost 2 weeks.
Does anyone have a definative day for earnings results? They are speculating on the yahoo board, and I would have to agree that 8/11/08 would be 3 months from when they should have anounced earnings for the last quarter.
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