FirstPlus said March 12 that it planned to buy Life Financial in a stock-for-stock merger that would give Life shareholders $20 worth of FirstPlus stock per Life Financial share. Since then, FirstPlus shares have dropped nearly 90%, to trade in the $4 range.

Nonetheless, financier Leon Black's Apollo Advisors LP is said to be making an investment in FirstPlus, through its subprime lender WMC Mortgage Corp.

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