American Home granted approvals for DIP amendments, exclusivity extension

By Jennifer Lanning Drey

Portland, Ore., Aug. 18 - American Home Mortgage Investment Corp. obtained final court approval to amend its debtor-in-possession financing to extend the DIP maturity date and increase availability, according to a source familiar with the case.

The approval came Monday from the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the amendments extend the DIP loan's maturity through Nov. 5, increase availability by $7 million and allow the company to keep up to $10.58 million of the proceeds from the sale of some non-performing loans for working capital and other corporate purposes.

The company said previously that although the amendment actually reduces the total DIP loan commitment to $30 million from $35 million, the company said it also eliminates a $12 million reserve reduction, leaving American Home with an additional $7 million available to be borrowed.

The company will pay a $525,000 final amendment fee, according to a Monday court filing.

Exclusivity extended

The court also agreed to extend American Home's exclusive periods to file a plan of liquidation and solicit votes on the plan, the source said.

The exclusive plan-filing period was extended to Sept. 2 from Aug. 19 and the solicitation period to Oct. 29 from Oct. 17.

The company said in the motion requesting the approval that since its last exclusivity extension was granted, it has expended significant time working to facilitate an effective transition of its servicing business to purchaser AH Mortgage Acquisition Co.

American Home filed a plan of liquidation Aug. 18.

American Home, a Melville, N.Y.-based real estate investment trust focused on residential mortgage loans, filed for bankruptcy on Aug. 6, 2007. Its Chapter 11 case number is 07-11047.

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