Ross's bid wins American Home Mortgage unit
NEW YORK (Reuters) - A bid by U.S. billionaire investor Wilbur Ross won the loan servicing unit of bankrupt American Home Mortgage Investment Corp. AHMIQ.PK, a lawyer for the unsecured creditors said on Friday.
The purchase price, under a stalking horse agreement, will be between $430 million and $500 million, said Mark Indelicato of Hahn & Hessen LLP. The company had received no higher offers prior to an auction scheduled for Friday, which left Ross as the winner, Indelicato said.
"We had hoped there would be others and few parties did express interest," said Indelicato. "Now we're just focusing on getting the sale approved."
American Home had been the 10th-largest U.S. mortgage lender before filing for Chapter 11 bankruptcy protection on August 6. It is now liquidating assets to pay creditors.
More than a dozen U.S. mortgage lenders have gone bankrupt this year, including several "subprime" lenders that provided loans to borrowers with poor credit.
American Home catered to people with better credit. It collapsed after investors stopped buying most home loans, including American Home's, apart from those they deemed safest.
Ross has tackled restructurings in the steel, textile and coal industries. American Home is his first U.S. mortgage bet.
Ross, according to Forbes magazine, was estimated to be worth $1.7 billion.