Finance company Contifinancial Corp. said late Wednesday that it had agreed to be bought by Residential Funding Corp., a division of General Motors.

Terms of the deal were not disclosed.

Contifinancial is among the high-flying subprime mortgage lenders that ran into trouble when the market for their asset-backed securities dried up last fall. It owes commercial banks more than $500 million on loans due this August, increasing the pressure to find an investor.

The 100% stock merger is subject to satisfactory completion of due diligence and execution of a definitive merger agreement. An agreement is expected within 30 days, Contifinancial said, and the transaction is expected to close 90 days afterward.

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