Court Approves Sale of ContiFinancial Corporation's Servicing Platform and Rights to Fairbanks Capital Corp.Financial/Business Editors NEW YORK--(BUSINESS WIRE)--June 27, 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 received approval from the United States Bankruptcy Court, Southern District of New York, to sell its ContiMortgage servicing platform and rights to Fairbanks Capital Corp. ("Fairbanks"). The two companies expect to complete the transaction within 30 to 45 days. ContiFinancial had reached agreement to sell the unit to Fairbanks in early May, with the stipulation that court approval would be necessary under Section 363 of the Bankruptcy Code. 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, "We are extremely pleased that the Court has allowed this transaction to proceed. It represents the best possible resolution for our creditors and for our loyal employees who have worked so hard during some very trying times." Fairbanks has indicated that it expects to expand the Hatboro, Pa.-based servicing operation of ContiMortgage, which currently employs over 400 people. Fairbanks is one of the highest rated specialty servicers in the country with over ten years of residential real estate loss mitigation experience. Fairbanks is headquartered in Salt Lake City, Utah For ships of the United States Navy of the same name, see . Salt Lake City is the capital and the most populous city of the U.S. state of Utah. The name of the city is often shortened to Salt Lake, or its initials, S.L.C. . Its investors include FSA FSA Financial Services Authority FSA Food Standards Agency (UK) FSA Farm Service Agency (USDA) FSA Financial Services Agency (Japan) Portfolio Management, Inc., Nomura Principal Capital Group Holding Trust, PMI See Private Mortgage Insurance. Mortgage Insurance Co., GE Equity and FGIC FGIC See Financial Guaranty Insurance Corporation (FGIC). Services, Inc. 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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