First Magnus' Countrywide lenders agree to accept liquidation plan

By Caroline Salls

Pittsburgh, Feb. 7 - First Magnus Financial Corp. lenders Countrywide Warehouse Lending and Countrywide Home Loans, Inc. have agreed to change their votes on the company's plan of liquidation to accepting from rejecting, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Arizona.

Under the plan support stipulation, First Magnus has agreed to transfer all Countrywide warehouse loan funds it is holding to Countrywide Warehouse Loans by March 1.

The funds may be subject to disgorgement when the final amount of Countrywide Warehouse Lender's claim has been determined.

First Magnus will continue to service the Countrywide loans until April 1, and then servicing will be transferred to Countrywide Warehouse Loans until the loans are sold by either Countrywide or First Magnus.

First Magnus has agreed to attempt to sell the loans for six months. If First Magnus is unable to sell the loans, they will be transferred to Countrywide Warehouse Loans to be liquidated.

Any loan sale amounts that exceed the amount of Countrywide Warehouse Lenders' claim will be returned to First Magnus.

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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