in bankruptcy proceedings in Wilmington, Del., after filing under Chapter 11 in October. Mellon Bank Corp., Source One Mortgage Co., Atlantic Mortgage Co., and PNC Bank Corp.'s mortgage unit are individually looking at the remaining assets of the former industry powerhouse. First Nationwide Bank offered $150 million for the company's remaining servicing assets. That offer needed approval from both the bankruptcy court and Lomas' creditors. In court on Tuesday, Dale Kurland, an industry consultant, formerly head of mortgage mergers and acquisitions at Bear Sterns, testified for Lomas. She compared the known to the unknown - an offer from First Nationwide is on the table, she said, while the other companies have to do due dilligence and might not make offers. If they do, the offers might not be substantially greater than First Nationwide's. This is the second time Lomas has filed for bankruptcy protection. The first was in 1989, after the company suffered heavy losses on Texas real estate, emerging in 1992, just in time for a refinancing boom and high prepayments.
Save $400 off your subscription. Special offer ends April 30, 2017.
No credit card required. Complete access to articles, breaking news and industry data.
Have an account? Sign In