AmeriFirst Financial seeks extension of exclusive plan periods

By Sarah Lizee

Olympia, Wash., Dec. 22 – AmeriFirst Financial, Inc. is seeking an extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

AmeriFirst asked the court to extend the exclusive plan filing period through March 6 and the exclusive solicitation period through May 6.

The company said cause exists to extend the exclusive periods because the debtors continue to make good-faith progress.

Through the Chapter 11 case, the debtors closed a sale of the bulk of their commercial line of business and obtained approval for the sale of their most valuable asset, which is their mortgage servicing rights.

The debtors worked with a variety of parties, including Ginnie Mae, Fannie Mae and Freddie Mac to ensure the debtors obtain all necessary approvals prior to the transfer date of Feb. 1, at which point additional sale proceeds will be paid into the estates.

The debtors also recently obtained final approval of a debtor-in-possession financing provided by RCP Credit Opportunities Fund Loan SPV (Fund III), LP and RCP Customized Credit Fund (Fund IV-A), LP.

The company said that, despite on-going litigation with the official committee of unsecured creditors regarding the committee’s motion seeking standing to pursue estate causes of action, the debtors remain hopeful that negotiations with their key stakeholders to effectuate an orderly wind down of the debtors’ estates through a plan of liquidation will progress.

A hearing on the exclusivity extension is scheduled for Jan. 30.

AmeriFirst Financial is a mortgage lender based in Mesa, Ariz. The company filed bankruptcy on Aug. 24 under Chapter 11 case number 23-11240.

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