TMA going under?

Discussion in 'Stocks' started by turkeyneck, Mar 3, 2008.

  1. zdreg

    zdreg

    do not underestimate wall street and hedge fund forcing a fire sale of TMA assets. is this a realistic scenario?
     
    #21     Mar 5, 2008
  2. zdreg

    zdreg

  3. AAA30

    AAA30

    JP morgan just sent tma a default notice. b/a 2.01/2.05
     
    #23     Mar 5, 2008
  4. Form 8-K for THORNBURG MORTGAGE INC


    --------------------------------------------------------------------------------

    5-Mar-2008

    Triggering Events That Accelerate or Increase a Direct Financial Obligatio



    Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement.
    Thornburg Mortgage, Inc. (the "Company") has entered into reverse repurchase agreements, a form of collateralized short-term borrowing, with various counterparties.

    The Company received a letter from JPMorgan Chase Bank, N.A. ("JPMorgan"), dated February 28, 2008, after failing to meet a margin call of approximately $28 million. The letter states that an Event of Default as defined under that certain Master Repurchase Agreement, dated as of August 3, 2006, as amended on February 7, 2007 by and between the Company and JPMorgan (the "Agreement") exists. The letter also notified the Company that JPMorgan will exercise its rights under the Agreement. The aggregate amount of proceeds lent to the Company under the Agreement was approximately $320 million.

    The Company's receipt of the notice of an event of default has triggered cross-defaults under all of the Company's other reverse repurchase agreements and its secured loan agreements. The Company's obligations under those agreements are material.
     
    #24     Mar 5, 2008
  5. AAA30

    AAA30

    Thanks for posting the 8k Cndtrader.
     
    #25     Mar 5, 2008
  6. no problem.

    This will be big news by am no doubt.
     
    #26     Mar 5, 2008
  7. Daal

    Daal

    question is how much they will lose on fire sale of assets. stock is pricing in some $1.5B
     
    #27     Mar 5, 2008

  8. and what other dominos does this event push over? Nasty time to be force selling assets - right at the bottom.
     
    #28     Mar 5, 2008
  9. Daal

    Daal

    the credit facilities they have demand profitability, the firesale will count as gaap losses so it will be up to the facilities to decide to shut them down then they will file for bankruptcy
     
    #29     Mar 5, 2008
  10. One more rally in this pig ETFC style.
     
    #30     Mar 5, 2008