Contifinancial Corp. said Friday that it expects to report a $247 million loss for the quarter ended March 31 and that its lenders have suspended covenants on more than $500 million of unsecured loans due Aug. 20.
The company said May 19 that it had received a letter from RFC Financial, a General Motors subsidiary, expressing interest in an acquisition. On June 2, Contifinancial's chief financial officer Daniel Willet resigned. Bear, Stearns & Co. and Fitch Investors Services cut ratings on the company last week. Conti said its audited results will not be available before the end of June.