Ownit Mortgage Solutions Inc., a bankrupt subprime lender, selected a $4 million offer from Credit-Based Asset Servicing and Securitization LLC to be the lead bidder, or stalking horse, at an auction of 54 loans that was scheduled to take place Thursday.
Having no debtor-in-possession financing, Ownit needs proceeds from the auction to pay operating expenses. It said in a motion filed Jan. 23 that its $330,000 of cash on hand would not pay its rent.
Ownit planned to ask the court Thursday to approve the sale to C-Bass or the highest bidder at the auction.
Last week, C-Bass, of New York, agreed to pay $259 million to buy another subprime lender, Fieldstone Investment Corp.; MGIC Investment Corp. and Radian Group Inc. own 92% of C-Bass.
Ownit, of Agoura Hills, Calif., halted operations in December and filed a Chapter 11 bankruptcy petition in the U.S. Bankruptcy Court for the Central District of California.
