First Magnus Files Wind-Down Plan

Law360, New York (October 16, 2007, 12:00 AM EDT) -- Troubled mortgage lender First Magnus Financial Corp. has told a bankruptcy court it could pay its unsecured creditors up to one-half what they're owed under its current Chapter 11 liquidation plan.

Filing its plan to the Arizona bankruptcy court Monday, First Magnus said it would have between $28 million and $44 million left in its coffers after wrapping up the company, selling off its assets and paying secured creditors with the proceeds.

The lender told the court it owed approximately $93 million in unsecured claims, of...
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