US mortgage giant needs $1bn to survive
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Citigroup, Credit Suisse, Royal Bank of Scotland, Thornburg, UBS, US mortgage March 21st, 2008One of America’s biggest home loan providers, Thornburg Mortgage, needs to raise nearly $1bn over the next seven business days in order to keep its creditors at bay.
The New Mexico-based firm defaulted on $610m (£307m) in margin calls from lenders earlier this month and has been teetering on the brink of becoming the next American financial company to fall victim of the global credit crunch.
It has struck a conditional deal with five creditors for a further $5.8bn of financing - but the agreement depends on Thornburg raising $948m from other sources over the next seven days.
The five banks holding the keys to Thornburg’s future are Royal Bank of Scotland, Citigroup, Credit Suisse, UBS and the troubled institution Bear Stearns.
Thornburg’s chief executive, Larry Goldstone, said the conditional agreement illustrated a “high degree of confidence” from lenders in “the superiority of our origination franchise, the quality of our assets and the strength of our management team”.
Tags: Citigroup, Credit Suisse, Royal Bank of Scotland, Thornburg, UBS, US mortgage
