American Home Mortgage seeks approval of bank share sale

By Caroline Salls

Pittsburgh, April 2 - American Home Mortgage Investment Corp. requested court approval to sell 10,000 shares in American Home Bank, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The Bancorp, Inc. is the stalking horse bidder for the share sale.

The company said it expects the net proceeds from the sale to be $40.46 million, based on Feb. 28 book value.

If American Home chooses a competing transaction, it will pay the stalking horse bidder a $400,000 break-up fee.

Competing bids, which are due by 4 p.m. ET on May 8, must be for at least the amount of the $40.46 million purchase price, plus the amount of the stalking horse bid and $500,000.

All bids must include a $1 million deposit.

If the company receives qualified competing bids, an auction will be held on May 12. Bidding at auction must be made in increments of at least $250,000.

The sale hearing is scheduled for May 15, and a hearing on approval of the bid procedures will be held April 21.

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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