Oak Street Mortgage - Subprime Retail(?)

The story linked above pretty much says it all. Here is a key excerpt:

Carmel-based Oak Street Mortgage, which not long ago was a high-flier poised to go public, filed for Chapter 11 bankruptcy this morning in federal court.

Oak Street in December sold most of its assets to Kansas City, Mo.-based Novastar Financial Inc. amid a meltdown of the sub-prime mortgage market. Subprime lenders like Oak Street make loans to customers with shaky credit.

The article has some general background on the company :

Founded in 1999 by former Bank One executive Steve Alonso and others, Oak Street rode a red-hot housing market to become central Indiana's fastest-growing private company in 2003, according to IBJ research. The next year, it registered for a $150 million initial public offering, a plan it later tabled.

A slumping housing markets, tough competition and other factors led Oak Street to sell its assets.

...

At its peak, Oak Street employed 700 people, 500 of whom remained at the time of the sale. Alonso said the sale enabled employees to keep their jobs with the new owner.