C-BASS Files For Chapter 11

Credit-Based Asset Servicing and Securitization (C-BASS), a New York-based subprime mortgage investor, has filed for Chapter 11 bankruptcy protection.

According to a report in the Wall Street Journal's Daily Bankruptcy Review, C-BASS listed between $10 million and $50 million in assets, more than $1 billion in debt and between 100 and 200 creditors. Seven C-BASS affiliates are also seeking bankruptcy protection.

At the time of the bankruptcy filing on Nov. 12, C-BASS was in the process of liquidating its existing portfolio while returning the cash proceeds received to its lenders and investors.

C-BASS is a joint venture owned by MGIC Investment Corp. and Radian Group Inc., with each company owning a 45.5% stake. C-BASS has been liquidating its portfolio since the 2007 sale of its Litton Loan Servicing subsidiary to Goldman Sachs Group Inc.

SOURCE: Wall Street Journal Daily Bankruptcy Review


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