Thornburg Mortgage to Lose NYSE Listing

December 3, 2008 No Comments »


Despite a 1-10 reverse stock split, struggling mortgage lender Thornburg Mortgage will see its shares delisted from the NYSE this Friday.

The company announced today that its stock price fell below the minimum 30-day average closing price of $1.00 per share back in May, and subsequently failed to cure the non-compliance within the required six month period following.

As a result, Thornburg shares will see their way over to the OTC Bulletin Board and/or Pink Sheets following the suspension from the big board.

The Santa Fe, New Mexico-based jumbo loan lender stressed that the suspension didn’t signify a default under the company’s lending arrangements, nor will it change the company’s filing of periodic reports with the SEC.

But one has to wonder to what capacity the company is running, considering its tenuous state.

In early October, the company cut 29 sales and operations staff as it extended its exchange offer for the eight time, a plan aimed at satisfying a number of margin calls from its creditors (which is since completed).

Despite a healthier-than-market portfolio of mortgage securities, the company was hit hard when others sold off their related holdings, forcing the price of Thornburg’s securities lower, sparking the devastating margin calls.

It’s still somewhat unclear if the company is still lending, though when I contacted the company two months ago, they said they were.

Thornburg had specialized in Alt-A lending, offering jumbo and super-jumbo adjustable-rate mortgages to the most credit worthy of borrowers.

Shares of Thornburg fell three cents, or 10 percent, to 27 cents in midday trading, well below their 52-week high of $140.50.

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