Contifinancial Corp. said Wednesday that it broke off talks with General Motors' Residential Funding Corp. unit, which had been angling to buy the home equity lender.
In May the company said it had received a "letter of interest" from Residential Funding. Subsequent speculation that the deal was off hurt Contifinancial's stock price.
This week Contifinancial said it is having discussions with others regarding an acquisition or an equity investment.
Meanwhile, Contifinancial's warehouse lines are due to expire this month, and other bank facilities expire Aug. 20. The company said it is talking to lenders about these debt facilities and its "ability to extend, renegotiate, or refinance its facilities depends on the successful completion of a transaction with a buyer or equity investor."