Banks Slam American Home's Plea For Cash

Law360, New York (August 7, 2007, 12:00 AM EDT) -- Just hours after American Home Mortgage Investment Corp. filed for bankruptcy Monday, its requests for financing loans and permission to use its cash collateral drew objections and an adversary suit from major bank lenders.

The company said when it filed for Chapter 11 that it needed $50 million to finance its liquidation and planned to request as much from billionaire Wilbur Ross' WLR Recovery Fund III LP fund, but it added that it needed $12 million immediately to stay afloat.

It also said it wanted to...
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