Accredited Home Lenders Holding Co. has won valuable time in its attempt to be acquired -- though the potential acquirer claims conditions of the merger still have not been met.
Lone Star Fund V, L.P., announced in a filing with the Securities and Exchange Commission Tuesday that its subsidiary, LSF5 Accredited Investments LLC, will extend its offer to acquire the San Diego-based subprime lender until 12 p.m. on Aug. 28.
The extension was granted "in accordance with Lone Star's obligations under the merger agreement," the filing said.
Following a filing last Friday by Lone Star in which it indicated Accredited would not meet all of the closing conditions prior to the Aug. 14 deadline, the lender filed a lawsuit to force the $15.10-per-share merger.
Accredited announced yesterday that the trial date had been fast-tracked by the Delaware Chancery Court. The trial was set to go by early October.
Lone Star reportedly offered to extend to the merger deadline on Monday, but Accredited responded that it saw no reason for an extension since it had completed the conditions of the merger.
"As of today, the company's failure to satisfy all of such conditions continues," Tuesday's filing said. "Pursuant to the merger agreement, so long as one or more conditions to the closing of the tender offer remain unsatisfied, Lone Star is required, upon the request of the company, to extend the tender offer period for no more than ten business days."