Tuesday, April 05, 2005

Philly Lender An Example Of Mortgage Morass

The plight of American Business Financial Services Inc., a leading subprime lender, may be an example of troubles to come. The company announced, "it was abandoning its bid to resume operations under U.S. Bankruptcy Court protection and would lay off its 820 employees."

"The company's demise should bring a speedier resolution for the mostly elderly investors who bought unsecured investment notes from the company through newspaper advertisements. They are now owed $622 million. But note holders are expected to recover only pennies on the dollar."

Not that the firm wasn't influencial. "An inglorious end for a ballyhooed economic-development deal. Mayor Street said at the time that the deal 'reaffirms Philadelphia's status as a vibrant center of business.'" Philly.com

8 Comments:

At 5:15 PM, Anonymous Anonymous said...

Why are the investors only going to recover pennies on the dollar ?

 
At 7:18 PM, Blogger John Law said...

they bought unsecured notes.

 
At 7:52 PM, Blogger Ben Jones said...

(Why are the investors only going to recover pennies on the dollar ?)

Soon even secured notes will retuen pennies on the dollar, IMO...Ben

 
At 8:13 PM, Blogger PunKtilious said...

Great article here, more info that will stike you in the solar plexis:

http://www.contraryinvestor.com/mo.htm

 
At 8:17 PM, Blogger That Dude said...

If John Street was involved you knwo the deal was crooked.

 
At 9:11 PM, Blogger John Law said...

what sites do you guys visit?

me-

www.prudentbear.com

www.financialsense.com

www.kitco.com

www.silver-investor.com

www.mises.org

 
At 10:36 PM, Blogger mspenelope said...

4/5/05

Hey John....

Here are some links that I used to visit more often. However, now a days it's hard to keep up with the avalanche!

http://1loansusa.com/Real_Estate/realestatenews.html

http://housebubble.com/

http://housingcrash.blogspot.com/

http://piggington.com/

http://www.realestatebubblewatch.com/forums/

 
At 12:01 AM, Anonymous Anonymous said...

housingbubble.blogspot.com
mises.org

 

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