First NLC Financial Services LLC (FNLC), the mortgage origination subsidiary of Friedman, Billings, Ramsey (FBR) Group Inc., plans to liquidate its assets and file a voluntary petition for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code.
In addition, FBR Group says will not close the previously disclosed recapitalization and sale of FNLC. In connection with the expected Chapter 11 filing, FBR Group does not expect to recover its remaining $12 million investment in FNLC.