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UPDATE: Thornburg Mortgage Says Survival Remains In Doubt
16 minutes ago - Dow Jones News
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Symbol Last %Chg
TMA 0.59 47.25%
As of 9:49 AM ET 8/26/08
DOW JONES NEWSWIRES
Thornburg Mortgage Inc. (TMA) said Tuesday that its survival as a viable business continues to remain doubtful following additional margin calls.
The real-estate investment trust said in its delayed quarterly report filed with the Securities and Exchange Commission that as of last Friday, it has identified additional downgrades in its portfolio that would result in margin calls of $25.9 million.
The company said that last Thursday, it met margin calls totaling $219 million. The company also has received and met margin calls on certain interest rate caps and loans on warehouse lines, according to the filing.
Thornburg shares were up 15 cents, or 38% to 55 cents, just after the market opened.
Thornburg was saved from the brink of bankruptcy earlier this year as it faced margin calls from creditors amid the declining worth of mortgage collateral.
The company received $1.35 billion in financing from a group of investors led by MatlinPatterson.
Last week, Thornburg said it was extending to Sept. 2 its exchange offer for preferred stock as it tries to overcome the final hurdle to completing a financing deal vital to its future as a viable business.
The extension comes about two months after Thornburg disclosed in a federal filing that it has substantial doubt about its ability to continue as a going concern for the foreseeable future filing, despite the fund-raising plan announced in late March that rescued it from bankruptcy.
Like other mortgage lenders, the Santa Fe, N.M., company has been under pressure during the housing crunch as the value of mortgages has fallen precipitously. But Thornburg's troubles have been of particular interest because it specialized in loans to relatively wealthy, credit-worthy borrowers and not subprime loans.
-By Bhattiprolu Murti, Dow Jones Newswires; 202-862-1357