First Magnus Files For Ch. 11

Law360, New York (August 21, 2007, 12:00 AM EDT) -- First Magnus Financial Corp., one of the biggest privately held mortgage lenders in the U.S., filed for Chapter 11 on Tuesday, marking the latest lender to slide into bankruptcy amid a downturn in the housing market.

The Tucson, Ariz.-based company filed its petition in the U.S. Bankruptcy Court for the District of Arizona, less than a week after it pulled the plug on home loan operations and handed pink slips to about 6,000 employees.

First Magnus recorded $942.1 million in assets and $812.5 million in liabilities...
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