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HomeBanc Slouches Toward Ch. 7

Law360 (February 5, 2009, 12:00 AM EST) -- Lacking the resources and the backing to realize its liquidation plan, stricken lender HomeBanc Mortgage Corp. has asked the court to convert its bankruptcy to a Chapter 7 proceeding.

On Tuesday, HomeBanc lodged its conversion request in the U.S. Bankruptcy Court for the District of Delaware, noting that protracted discussions with secured lenders and the creditors committee had failed to rally adequate support for the plan.

Faced with an impasse over the plan and scant resources, even after selling off virtually all its assets, HomeBanc has...
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