Accredited To Lone Star - Buy Us Or We Will Sue!
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Accredited Home Lenders Holding Co. is an interesting position. The company came to terms to be sold to Lone Star Fund V LP. Then the market when south and Lone Star has lost interest in buying the mortgage company. So now Accredited is telling Lone Star, buy us or we will sue.
The reality is that Accredited is going to go under if the deal does not happen, so they are in a Catch 22. Rarely have the courts enforced a sales contract that has not been completed. There may be some financial penalties the lawyers could get, but that will be decided long after Accredited has disappeared.
For the folks at Accredited, this is a tough time. They had a sales agreement before the market completely dropped out, but now it will be essentially unenforceable and most likely the company will fade away.
Last month Lone Star extended its tender offer until Tuesday to buy the Calabasas, Calif.-based mortgage lender for $15.10 per share, or $400 million. Lone Star said July 30 that Accredited Home Lenders (nasdaq: LEND - news - people )’ shareholders had tendered just 8.2 million shares, or less than a third of the company’s outstanding stock.
Accredited said if more than 50 percent of its outstanding shares are tendered by the Tuesday deadline it believes all conditions will have been met to close the offer.
In its SEC filing, Lone Star stated it did not expect to accept Accredited Home shares tendered as of midnight, Aug. 14. via Forbes.com
Update: Lone Star Press Release on Accredited Lawsuit.
It probably is a really good time to buy real estate - monthly payments are about equal to market rents ...
The part about the inventory is right on but in my area they are mostly low end and beat up ...
I worked for this man, he is a great con man and has done this in more than States then ...
You're right. If you come from Central Jersey (as the Boss and I do), you go to Florida at some ...
Maybe it was kryptonite...
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By Mike ...
I couldn't agree more.
The newspaper has always "stuck" it to the real estate agent with rates that were much higher ...
By the way, homeowners trying to get short sale approval should be aware that lenders are comparing the initial loan ...
Ouch! Thankfully I haven't come across anything like that yet. We normally don't have situations like that in ...
well, the guy was here illegally.
serves him right. 
BY USING FIRST CLAIM INSURANCE ADJUSTERS YOU WILL HAVE THE ABILITY TO LOOK AT YOUR INSURANCE SETTLEMENT AND REALIZE FIRST ...
Comment by ScaryJerry on 13 August 2007:
Yep, another dead ringer here, get out while you can, no I don’t own this stock or short it. I’m jsut saying this to save the little guys money, remember what happened with AHM? Don’t let your money freeze up!!