Delta Financial Corp - Subprime
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stories: snl.com, snl.com, newsday.com, bloomberg.com, marketwatch.com
Update - 2007-12-16: Former worker sues Delta Financial -- According to Newsday.com:
"A former employee of shuttered Delta Financial Corp., the Woodbury-based sub-prime lender heading to bankruptcy court, filed a lawsuit on behalf of herself and fired co-workers this week, charging the company had failed to provide proper advance notice of layoffs since August."
Click here to read the entire article.
Original Article - 2007-12-6: According to a Company Press Release today:
"The Company presently intends to file shortly for protection under the federal bankruptcy code. The Company intends to continue to operate its business as a "debtor in possession" as provided under the bankruptcy code; however, it intends to suspend taking new mortgage loan applications until further notice."
According to Newsday, the harsh reality looked like this:
The negotiations with Angelo Gordon fell apart after Delta's default with it's warehouse lenders.
"Under these circumstances, the Company's financial obligations under these agreements may be accelerated, and it may be subject to substantial payment obligations, as well as incurring cross-default claims from its other creditors."
Update - 11-16-07: Delta continues to fight for its survival. Just over a week after the layoffs, on Nov. 16th they announced their contingency plan:
Delta said that it's deal with Angelo Gordon depends on the company pricing a securitization of roughly $500 million mortgages, or arranging other financing for the loans.
Delta is hoping to close the deal on or before Dec. 14, 2007.
Update - 11-8-07: Media sources confirm the multiple reports we have been receiving about additional layoffs and office closures at Delta Financial that were announced on Thursday, November 8th, 2007. Per a short email sent to workers by CEO and President Hugh Miller:
Of an estimated 1,056 employees, 470 were laid off. Read the whole story at Newsday or Reuters.
Per a 11-08-07 news release on the company website:
Locations still listed on the site confirm one tipster's report that Delta has "closed 4 of 11 national retail branches (Las Vegas, Dallas, Chicago, and Phoenix".
Update - 2007-08-22: We've been hearing numerous reports that Delta Financial Corp has reduced its staff. Per a press release linked to from Delta Financial's website:
We are continuing to gather additional information on Delta Financial Corp. If you have any information regarding their continuing status, please let us know!
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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.