Amstar Financial Holdings to Close Amstar Mortgage Corporation Unit.
This decision was based primarily upon four factors: the current mortgage market conditions, the increased unpaid liability created by former unprofitable branch offices, the cost to defend several mostly frivolous lawsuits, and seemingly stable lenders unable or unwilling to honor contract commitments with Amstar Mortgage. This deal will allow all branch offices and branch employees to continue with a strong viable company, as well as stop any additional liability to AFLH.
Amstar Financial Holdings, Inc. will continue efforts and raise capital for operations for its other subsidiaries. Once capital is procured, AFLH will focus its resources on Homes Opportunity, LLC and Amstar Guaranty Agency, Inc. its other subsidiaries. If financing is obtained, Homes Opportunity, LLC will concentrate efforts on purchasing bank foreclosures at a steep discount, while Amstar Guaranty Agency, Inc. will pursue providing insurance products through existing relationships. Both of these Amstar Financial companies are in their early stages of development and therefore may take some time before Amstar Financial may potentially show a significant profit. All operations of AFLH will be suspended on or about December 15, 2007 unless adequate financing can be obtained for these subsidiaries. We are very saddened to make this move but are hopeful that these other subsidiaries of AFLH can become viable.
Due to the closure of Amstar Mortgage Corporation, Amstar Financial Holdings, Inc. will not be posting further financial statements on Pinksheets.com until further notice. Additionally, AFLH will cease work on filings to become a fully reporting company with the SEC at this time.
Statements regarding financial matters in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The company intends that such proclamations about the Company's future expectations, including future revenues and earnings, technology effectiveness and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results.
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|Date:||Aug 22, 2007|
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