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.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.