First Magnus looks to sell $8.48 million in construction loans

By Caroline Salls

Pittsburgh, Sept. 14 - First Magnus Financial Corp. requested court approval to sell $8.48 million in construction loans, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Arizona.

The stalking horse bidder is Summit Investment Management, LLC, with a $6.41 million bid.

First Magnus said the sale proceeds will be used for working capital to allow the company to complete its liquidation.

Competing bids must include a $325,000 deposit.

The starting bid at auction will be $6.56 million, and subsequent bids must be made in increments of at least $50,000.

The auction will be held Sept. 19, and the company has asked the court to schedule the sale hearing for the same day.

First Magnus, a Tucson, Ariz., mortgage loan originator, filed for bankruptcy on Aug. 21. Its Chapter 11 case number is 07-10578.

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