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<\/figure>\n<\/div>\nFirst Guaranty Mortgage Corp.<\/strong>\u00a0(FGMC) and its holding company,\u00a0Maverick II Holdings LLC,<\/strong>\u00a0filed for<\/a> Chapter 11 bankruptcy protection Thursday, June 30, leaving one of the country\u2019s major warehouse lenders as its largest unsecured creditor, according to court filings.<\/p>\n Pennsylvania-based Customers Bank<\/strong>, which has warehouse lending operations located in Hamilton, New Jersey, is listed as the largest unsecured creditor in the FGMC Chapter 11 case \u2014 with a claim of $25 million, court pleadings show. <\/p>\n A 2021 report by industry publication Inside Mortgage Finance<\/strong> ranked Customers Bank as the 10th largest warehouse lender nationally in terms of financing commitments as of Q3 2021 \u2014 at $5.4 billion.<\/p>\n Scott Goodwin, senior vice president of warehouse lending at Customers Bank, said the debt exposure in the FMGC case \u201cis guaranteed by a PIMCO<\/strong> entity, and we expect to be paid in full.\u201d<\/p>\n Behemoth investment management firm PIMCO in 2015 purchased a stake in FMGC, according to a report by\u00a0Inside Mortgage Finance<\/a>\u00a0at the time.<\/p>\n HousingWire reported late last week that First Guaranty had\u00a0laid off nearly 80% of its staff<\/a>\u00a0and stopped accepting new mortgages. The lender then\u00a0filed for Chapter 11 bankruptcy<\/a>\u00a0on Thursday, June 30.<\/p>\n “While we have made considerable efforts to address our ongoing financial challenges related to the state of the mortgage market, we ultimately must do what is best for our borrowers and consumers,” said Aaron Samples, chief executive officer of FGMC. “After careful review and consideration, the company determined that pursuing the protections of chapter 11 is the right and responsible path at this time. <\/p>\n \u201cAs part of this process, the Company retained a portion of its workforce to manage the day-to-day business.\u201d<\/p>\n The lender also has filed various motions to preserve company \u201cvalue for the benefit of the company\u2019s stakeholders,\u201d FGMC\u2019s announcement of the bankruptcy states. <\/p>\n The goal for a company in a Chapter 11 bankruptcy protection case is to emerge from bankruptcy after restructuring its operations and debt through a court-approved reorganization plan \u2014 with secured creditors having superior status over unsecured creditors.<\/p>\n Among the motions now pending in the FGMC bankruptcy case is a request seeking court approval for debtor-in-possession (DIP) financing, which would be provided by Barclays Bank PLC<\/strong>, court pleadings show. DIP is a special kind of financing available to companies in Chapter 11 cases and normally has priority over existing creditors\u2019 claims or equity holdings.<\/p>\n Other creditors in the FGMC bankruptcy with unsecured claims exceeding $500,000 include the following: <\/p>\n The nature of each of the company\u2019s claims is listed as a margin call<\/a> in the court pleadings \u2014 except for Sourcepoint\u2019s claim, which is listed as a trade debt. FMGC is listed as the only equity security holder in Maverick II Holdings, court pleadings show.<\/p>\n The bankruptcy filing so far does not include a list of secured creditors, only a creditors matrix \u2014 which does not include financial figures. PIMCO is not listed in the matrix, at least under that operating name.<\/p>\n FGMC\u2019s Chapter 11 bankruptcy case is filed with the U.S. Bankruptcy Court for the District of Delaware.<\/p>\n The post FGMC owes Customers Bank $25M, bankruptcy filing shows<\/a> appeared first on HousingWire<\/a>.<\/p>\n\n