Thornburg Mortgage To Shut Down, File Ch. 11

Law360, New York (April 1, 2009, 12:00 AM EDT) -- Embattled home lender Thornburg Mortgage Inc. announced Wednesday that it would liquidate its remaining assets through Chapter 11 bankruptcy proceedings and cease operations in the coming weeks.

The announcement came on the same day that the Santa Fe, N.M.-based mortgage real estate investment trust said that several additional counterparties to existing finance agreements had agreed to hold off on filing deficiency claims stemming from unpaid debts on those agreements, which totaled around $4 billion, for an additional month.

Suzanne O'Leary Lopez, a spokeswoman for Thornburg Mortgage,...
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