ContiFinancial Files for Chapter 11 Protection.Business Editors NEW YORK--(BUSINESS WIRE)--May 18, 2000 ContiFinancial Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CFNI CFNI Caribbean Food and Nutrition Institute CFNI Christ for the Nations Institute (Dallas, TX, USA) ) announced today that it has filed for protection under Chapter 11 of the Federal bankruptcy laws. The Company has taken the action as part of its efforts to reorganize the company's capital structure and preserve value for its creditors. The possibility of a Chapter 11 filing had been disclosed publicly by the Company in previous announcements over the course of several months while management explored its strategic options. Last week, the Company announced that it had reached a definitive agreement to sell its ContiMortgage home equity loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. platform and rights to Fairbanks Capital Corporation. ContiMortgage is seeking prompt Bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. approval of sale procedures. The Company also is in negotiations regarding the future of its loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. operations. Transactions will be subject to approval under Section 363 of the bankruptcy code Bankruptcy Code may refer to:
The Company has more than sufficient cash resources to meet trade obligations and employee expenses while in Chapter 11. Alan Fishman, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of ContiFinancial, said, "The Chapter 11 filing is a necessary step in the process of reorganizing ContiFinancial to preserve value. This moves us closer to completing that reorganization process." ContiFinancial Corporation is a financial services company with headquarters in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . Certain statements contained in this press release, including, but not limited to, statements relating to the Company's strategic objectives, maximizing value and future performance, which are not historical fact, may be deemed to be forward-looking statements under the federal securities laws. There are many important factors that could cause the Company's actual results to differ materially from those indicated in the forward-looking statements. Such factors also include, but are not limited to, general economic conditions, interest rate risk; prepayment speeds; delinquency and default rates; credit losses; demand for the Company's services; real estate values; its needs for financing; the continued availability of the Company's credit facilities; the risk of margin calls on the Company's credit facilities and hedge positions; the performance of the Company's subsidiaries and affiliates; that creditors not a party to the Forbearance Agreement will not accelerate their debt and commence enforcement actions; and other risks identified in the Company's Securities and Exchange Commission filings. In addition, it should be noted that past financial and operational performance of the Company is not necessarily indicative of future financial and operational performance. |
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