American Business Financial trustee seeks court OK for $30.2 million whole loan asset sales

By Caroline Salls

Pittsburgh, July 21 - American Business Financial Services Inc.'s Chapter 7 trustee asked for court approval to sell $31.4 million in whole loan assets via auction, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The assets consist of $30.2 million in 221 first- or second-lien residential mortgage loans and $1.2 million in eight first- or second-lien residential mortgage loans.

According to the filing, of the 50 potential purchasers identified in the marketing process, eight have indicated possible interest in purchasing the loan assets.

Each bid must include a 5% deposit of the proposed purchase price.

The minimum bid for the 221 loans must be $30.2 million, while the minimum bid for the eight-loan group must be $1.2 million.

The company expects the transactions to close by Aug. 19.

American Business has requested a hearing on the sale procedures for July 26, an Aug. 8 bid deadline, an Aug. 9 auction and an Aug. 12 sale hearing.

Philadelphia-based American Business Financial Services originates, sells and services home equity loans and money mortgage loans. It filed for Chapter 11 bankruptcy on Jan. 21. The case was converted to a Chapter 7 bankruptcy on May 17. The company's case number is 05-10203.

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