MELLVILLE, N.Y., Aug. 29 /PRNewswire-FirstCall/ -- American Home Mortgage Investment Corp. ("American Home") today announced that the U.S. Bankruptcy Court for the District of Delaware has approved sale procedures for certain loans owned by Broadhollow Funding, LLC and Melville Funding, LLC, both affiliates of American Home that are not subject to the company's Chapter 11 filing made on August 6, 2007.
Under the Court's approved sale procedures, approximately 5,700 whole mortgage loans owned by Broadhollow Funding, LLC and Melville Funding, LLC will be sold at auction on September 11, 2007 at 8:30am ET at the offices of Young Conaway Stargatt & Taylor, LLP, 1000 West Street, 17th Floor, Wilmington, Delaware, 19899. The company noted that any party wishing to take part in this process and submit a bid for the loans must first submit a Qualified Bid, defined in the Bid Procedures attached to the Sale Procedures Order, entered by the Court on August 22, 2007 under Docket No. 282, by no later than September 10, 2007 at 12:00 pm ET. Only parties that have submitted a Qualified Bid may participate in the auction.
This action follows the signing of an Auction Procedures Agreement by and between American Home Mortgage Investment Corp., AHM Investment, AHM Servicing, all of which are subject to the company's Chapter 11 filing, as well as Broadhollow Funding, LLC and Melville Funding, LLC. Loans up for auction include approximately 5,700 whole mortgage loans with an aggregate unpaid principal balance of approximately $1,620,000,000.
The auction is subject to the fuller terms and conditions of the Sale Motion, the Sale Procedures Order and the Sale Procedures, which shall take precedence in the event of any conflict. The Debtors encourage parties in interest to review such documents in their entirety. Copies of the Sale Motion, the Purchase Agreements, the Sale Procedures and/or the Sale Procedures Order may be obtained by written request to counsel to the Debtors, c/o Young Conaway Stargatt & Taylor, LLP, 1000 West Street, 17th Floor, P.O. Box 391, Wilmington, Delaware 19899-0391, Attention: Debbie Laskin. In addition, copies of the aforementioned pleadings may be found on the on the website of the Debtors' notice and claims agent, Epiq Systems - Bankruptcy Solutions LLC, at http://www.epiqbankruptcysolutions.com/, the Bankruptcy Court's website, http://www.deb.uscourts.gov/, and are on file with the Clerk of the Bankruptcy Court, Third Floor, 824 Market Street, Wilmington, Delaware 19801.
Forward-Looking Statements
This news release contains "forward-looking statements" that are based upon expectations, estimates, forecasts, projections and assumptions. Any statement in this news release that is not a statement of historical fact, including, but not limited to, earnings guidance and forecasts, projections of financial results and loan origination volume, expected future financial position, dividend plans or business strategy, and any other statements of plans, expectations, objectives, estimates and beliefs, is a forward-looking statement. Words such as "look forward," "will," "anticipate," "may," "expect," "plan," "believe," "intend," "opportunity," "potential," and similar words, or the negatives of those words, are intended to identify forward- looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that are difficult to predict, and are not guarantees of future performance. As a result, actual future events may differ materially from any future results, performance or achievements expressed in or implied by this news release. Specific factors that might cause such a difference include, but are not limited to: American Home's limited operating history with respect to its portfolio strategy; the potential fluctuations in American Home's operating results; American Home's potential need for additional capital; the direction of interest rates and their subsequent effect on the business of American Home and its subsidiaries; risks associated with the use of leverage; changes in federal and state tax laws affecting REITs; federal and state regulation of mortgage banking; and those risks and uncertainties discussed in filings made by American Home with the Securities and Exchange Commission. Such forward-looking statements are inherently uncertain, and stockholders must recognize that actual results may differ from expectations. American Home does not assume any responsibility, and expressly disclaims any responsibility, to issue updates to any forward- looking statements discussed in this news release, whether as a result of new information, future events or otherwise.
Media Contact: Joseph Kuo / Peter Hill Kekst and Company 212-521-4800
