Adfitech cleared to put bankruptcy plan to vote

WILMINGTON, Del. Jan 7 (Reuters) - Mortgage loan servicing company Adfitech received bankruptcy court approval on Thursday to begin asking creditors to confirm its plan of reorganization to exit Chapter 11, according to court documents.

A Maryland bankruptcy court judge, Duncan Keir, approved the company's disclosure statement, which must be mailed to creditors along with the plan.

The move likely clears the way for the company to emerge from bankruptcy.

Adfitech is a subsidiary of Thornburg Mortgage Inc THMRQ.PK, once one of the largest providers of "jumbo" home loans before it filed for bankruptcy in May with assets and debts of around $24 billion.

Thornburg, now known as TMST Inc, originally sought buyers for Edmond, Oklahoma-based Adfitech, a profitable business that provides outsourced services to the mortgage industry.

Creditors were unhappy with the prices offered for the business and stopped the sale. They instead sought to have the business brought out of bankruptcy and the ownership transferred to holders of Thornburg's senior notes.

The $304 million of senior notes are guaranteed by Adfitech.

In November, Adfitech reported a net profit of $460,539 on revenues of $2.6 million, according to court documents.

The Thornburg bankruptcy case is In re TMST Inc, U.S. Bankruptcy Court for the District of Maryland, No. 09-17787.

The Adfitech bankruptcy case is In re Adfitech Inc, U.S. Bankruptcy Court for the District of Maryland, No. 09-17788.

(Editing Bernard Orr)