HomeBanc Mortgage Case Converted To Ch. 7

Law360, New York (February 25, 2009, 12:00 AM EST) -- HomeBanc Mortgage Corp.'s motion to convert its Chapter 11 bankruptcy case to Chapter 7 has been granted, despite an objection from Fifth Third Bank that liquidation would jeopardize collection funds to which the bank says it is entitled.

Judge Kevin Carey issued the conversion order on Tuesday in the U.S. Bankruptcy Court for the District of Delaware after ruling that HomeBanc had “sufficient cause” to convert to Chapter 7.

“The debtors have liquidated or disposed of most of their assets, terminated any remaining business operations, and...
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