Thornburg Mortgage Inc. missed a Nov. 15 payments on some of its senior notes.
The ailing firm announced today that it missed an interest payment on its 8 percent senior notes that was due on Nov. 15. Thornburg said it did not have available funds to make the payment.
However, the New Mexico-based firm said it expects to make the past-due $12 million payment within the 30-day grace period once counterparties to the override agreement agree to amend the agreement.
Thornburg noted that an amended exchange offer and consent solicitation for all series of its outstanding preferred stock is scheduled to expire today, and as of yesterday it had received tenders for between 67 percent and 83 percent of various series of preferred stock.
Thornburg’s third-quarter profit of $140 million was driven by fair-value gains. But prior ongoing losses have pushed shareholder equity down to a negative $323 million on Sept. 30.
The company, which still claims it is a “leading single-family residential mortgage lender,” said in August that it had stopped originating new business.
