BNP Paribas, Deutsche Bank among HomeBanc creditors

13 August 2007

A number of European banks are among the creditors of beleaguered mortgage lender HomeBanc, it has been reported.

On Thursday HomeBanc filed for bankruptcy with the U.S Bankruptcy Court in Wilmington , Delaware.

The mortgage provider listed $1.5 billion of assets and $4.9 billion of debt in the filing, which sought Chapter 11 bankruptcy protection.

Subsequently, Securities and Exchange filings seen by the Reuters have revealed that BNP Paribas, Deutsche Bank and Commerzbank are all creditors of the Atlanta-based firm.

Homebanc is also thought to owe money to units of JP Morgan, KeyCorp and Bancorp.

News of the HomeBanc's collapse comes in the wake of a credit-crunch resulting from the ongoing meltdown of the US sub-prime mortgage market.

A statement issued by the firm said that the move had been taken on the grounds that "under the protection of Chapter 11, it will have the time and opportunity that it needs to achieve the best possible value for the creditors and other constituencies of its assets and operations, and to effect an orderly wind down of the company".

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