UPDATE 2-Anthracite gets 'going concern' warning, shares tank

* Auditors express "going concern" doubts

* Posts Q4 loss

* Shares dive as much as 65 pct (Adds conference call details, updates share movement)

March 18 (Reuters) - Shares of Anthracite Capital Inc (AHR.N) sank as much 65 percent to an all-time low Wednesday, after its auditors raised substantial doubt about the company's ability to continue as a going concern.

The auditors warned that the specialty finance company's liquidity position, market conditions, and uncertainty on the outcome of the company's negotiations with its lenders could force Anthracite out of business.

Anthracite joins a growing list of firms in the United States to receive a "going concern" warning, as the U.S. recession has put the survival of hundreds of companies in doubt.

In a conference call with analysts, a top company official said Anthracite was using current cash flow to repay its lenders and was not relying on fresh capital or asset sales for the purpose.

The company has liabilities of $393 million as of Wednesday morning, the official said in the call.

For the fourth quarter, Anthracite Capital posted a loss of $296.1 million, or $3.89 a share, compared with a profit of $18.5 million, or 24 cents a share, a year earlier.

On an operating basis, it incurred a loss of 52 cents a share.

Anthracite said it was not in compliance with certain covenants of a credit agreement and has fallen short of a margin call, but it has managed to get waivers on both from its lenders.

The company, which is externally managed by a subsidiary of BlackRock Inc (BLK.N), said it will pay cash dividends on its stock only to the extent necessary to maintain its real estate investment trust status.

Anthracite, which delayed its fourth-quarter earnings conference call by a day earlier this week, said it was negotiating with its lenders to obtain waivers for a longer term.

Shares of the New York-based company were down 55 percent at 36 cents Wednesday on the New York Stock Exchange. They traded as high as $9.59 in June last year, Reuters data show. (Reporting by Anurag Kotoky in Bangalore; Editing by Jarshad Kakkrakandy, Anil D'Silva)