Fir Tree tenders for some residential mortgage-backed securities

By Jennifer Chiou

New York, Jan. 22 - Fir Tree Partners, through its affiliate FT RMBS, LLC, announced the start of a cash tender offer for some residential mortgage-backed securities that are subject to the proposed $4.5 billion JPMorgan Chase/institutional investor RMBS settlement announced in November.

The following RMBS trusts are subject to the offer:

• SACO 2006-3;

• SACO 2006-5;

• SACO 2006-6;

• SACO 2007-2;

• BSMF 2006-SL1; and

• JPMAC 2006-WMC4.

The offer will end at 11:59 p.m. ET on Feb. 19.

According to a press release, all of the RMBS trusts in Fir Tree's tender offer are involved in active litigations against JPMorgan for breaches of representations and warranties made by JPMorgan regarding the credit quality and characteristics of the loans it sold to these trusts.

Fir Tree said that it is looking to exclude all of the RMBS subject to its tender offer from the JPMorgan settlement, regardless of the outcome of the tender offer.

"We believe Fir Tree is offering a better recovery with a more certain payment outcome on a much faster timeline for the RMBS subject to our tender than the proposed JPMorgan settlement," managing director Clinton Biondo said in the release.

"Holders will get their money now rather than waiting for the settlement payout, which could potentially take months or years, if it happens at all."

Holders may contact Chip Wheeler of Sea Port Group Securities, LLC, the dealer-manager (305 695-2000; cwheeler@theseaportgroup.com).

The private investment firm has locations in New York and Miami.

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