AHM May Get $38M More From ABN For Advances

Law360, New York (December 13, 2007, 12:00 AM EST) -- A judge on Wednesday allowed bankrupt subprime lender American Home Mortgage Lenders Inc. to ask for an additional $38 million from ABN Amro Holding NV to make advances to mortgagors, before eventually turning the mortgages over to ABN.

The mortgages are the subject of a repurchase agreement between AHM and the bank, with AHM making the initial sale of the mortgages to ABN in February, months before the company entered bankruptcy. That agreement provided that ABN could, at its discretion, fund advances to AHM's mortgagors....
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