American Home Mortgage granted court OK for continued use of cash collateral

By Jennifer Lanning Drey

Portland, Ore., Oct. 31 - American Home Mortgage Investment Corp. obtained court permission to continue to use cash collateral to fund the day-to-day operating expenses of its loan servicing business, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The termination date for the cash collateral was extended to Nov. 15 from Oct. 31.

When requesting the extension, American Home said it had anticipated closing on the sale of its servicing business prior to Oct. 31 but now expects the initial closing to take place in mid-November.

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

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