The Play filed for Chapter 11 bankruptcy in Delaware, listing assets of $5.1 billion and debts of $4.9 billion. That leaves about 200 million in assets. Current market cap $1.5 million!
O/S 51 million
Was delisted from NYSE last week. Fed just announced today they are not letting Mortage lenders go under.
Posted by cautionupahead on :
Started it's turn around today. Big short positions have to cover, as it was shorted down from $7 to 2c.IMO
Posted by Yankee on :
I posted this last week but it didn't get much attention. I believe this will be a money maker. Note this company still is or correct me if i'm wrong on the NYSE under other symbols.
Posted by cautionupahead on :
Not on the NYSE, was delisted a couple of weeks back, is now on the pinks, but they said they plan on uplisting to the OTCBB.IMO
Posted by metal1 on :
in the end the creditors will probably own the company leaving nothing for shareholders like happens with almost all bankruptcies. in the meantime though, there should be plenty of good trading opportunities
Posted by cautionupahead on :
That's not true. listing assets of $5.1 billion and debts of $4.9 billion. That leaves about 200 million in assets with 50M OS, do the math.
Posted by metal1 on :
LOL, your math is correct but that's not how it works. i wish bankruptcies were as simple as that. do some research into past bankruptcies and you'll see what i mean. might be some warrants left for shareholders. owens corning did that recently when they emerged.
Posted by metal1 on :
I guess a good example for you would be K-Mart. they listed 17 billion in assets and 10 billion in debt at the time of their bankrupcty filing. of course equity shareholders got nothing in the reorg.
Posted by cautionupahead on :
We'll see what happens. The FED just lowered the rate to lenders, so should help. There will be a run here, just watch. Could be a while, but it will happen.IMO
Posted by lukin4winners on :
I agree HMBN could run with the Feds policy of lowering rates which is just the begining. It will take time to right the ship on interest rates where it has an effect on business and consumer confidence . Once business starts spending and the mortgage sector finds stability HMBN may just get bailed out. It's better for the economy for companies like HMBN to find their way back than disappear in ch. 11 just like it's better for house owners to keep their houses than lose them. The infusion of money into countrywide home loans could directly benefit HMBN since there was talk of them buying some of their south east US stores and hiring some of their employees. good luck
Posted by metal1 on :
like i said earlier, they will be trading opportunites. there always are in these bankrupcties. in the end though, the company will probably emerge from bankruptcy with new equity. trade em if you got em
Posted by cautionupahead on :
Closed up 25%
Posted by jgygli on :
Court OKs Sale of HomeBanc Mortgages Tuesday August 28, 6:05 pm ET Bankruptcy Court Approves Sale of HomeBanc Mortgages to Countrywide
WASHINGTON (AP) -- Countrywide Financial Corp. is set to buy $128 million of mortgages from failed lender HomeBanc Corp. and take over leases at five of its offices in the South. The U.S. Bankruptcy Court in Wilmington, Del., approved the agreement between the two lenders Monday, according to court documents. The decision allows HomeBanc to complete a deal that was already under way before the company filed for bankruptcy on Aug. 9.
Like other mortgage companies that have recently gone under, Atlanta-based HomeBanc is swiftly selling assets, including mortgage loans it agreed to fund before seeking bankruptcy protection. As of June 30, HomeBanc's assets totaled $5.1 billion with total liabilities of about $4.9 billion, according to court papers.
In addition to approving the sale of HomeBanc's loans, the Wilmington court signed off on Countrywide's plan to take over leases at five HomeBanc branches in Georgia, Florida and North Carolina and hire some employees.
Posted by Yankee on :
What happens to us with shares of hmbn? Does country wide buy them or replace them with there stock or are we out of luck on this?
Posted by metal1 on :
more than likely the shares will be worthless in the reorg. i don't think they have made any official announcement as to the fate of equity holders yet though.
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