Reuters (03/10/08); Stempel, Jonathan
The lenders for Thornburg Mortgage have jeopardized the survival of the Santa Fe, N.M.-based company by demanding $610 million of cash or collateral, an amount it does not have in cash. "It appears the state of this company rests in its lenders' hands," says Steven Marks, a managing director at Fitch Ratings in New York. In addition to the increase in demand in margin calls, Thornburg, which specializes in large, adjustable-rate mortgages--including many with "triple-A" credit ratings--is struggling with the decline in mortgage prices. Thornburg plans to restate 2007 results, take a $427.8 million charge as of December 31 for its adjustable-rate mortgage holdings, and some analysts also believe the lender might need to file for bankruptcy protection.
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