NEW YORK, Sept 18 Accredited Home Lenders
Holding Co LEND.O, a struggling subprime mortgage lender, on
Tuesday posted a $260.2 million quarterly loss and said it
remained unsure it would survive the fallout from a slumping
U.S. housing market.
The loss was $10.29 per share for the quarter that ended
March 31, according to a delayed first-quarter report filed
with the U.S. Securities and Exchange Commission. That compared
with a profit of $35.8 million, or $1.61 per share, a year
Accredited said quarterly net revenue totaled negative
$134.6 million, including a $178.9 million loss from the sale
of mortgage loans.
Earlier this month, San Diego-based Accredited closed much
of its lending operations, eliminating 1,600 of 2,600 jobs.
Subprime lenders make home loans to people with poor credit.
Dozens have curtailed lending or quit the industry this year as
defaults rose and investors stopped buying subprime loans.
Accredited said it expects to need further amendments to or
waivers of covenants in its credit facilities in 2007.
"We face significant challenges due to adverse conditions
in the non-prime mortgage industry, and we cannot assure you
that we will continue to operate as a going concern," it said.
The company made $15.8 billion of home loans last year.
Accredited has been trying to force Dallas-based private
equity firm Lone Star Funds to complete a $400 million
takeover, valuing Accredited at $15.10 per share.
Lone Star tried to back out of the June 4 agreement after
market conditions deteriorated. In late August, it submitted a
revised $8.50 per share bid, valuing Accredited at $214
million, but Accredited rejected the lowered offer.
Accredited said a trial on the matter is scheduled to begin
on Sept. 26 in Delaware Chancery Court.
Shares of Accredited closed Monday at $10.28 on the Nasdaq.
They began the year at $27.35.
(Reporting by Jonathan Stempel)