This excerpt taken from the LEND 8-K filed Mar 14, 2007.
ACCREDITED PURSUING STRATEGIC OPTIONS
SAN DIEGO, March 12, 2007 Accredited Home Lenders Holding Co. (NASDAQ:LEND) (Accredited or Company) announced today that it is currently exploring various strategic options, including raising additional capital to enhance liquidity and provide the Company with the flexibility to retain or sell originated loans based on an assessment of the best overall return. Accrediteds available cash resources have been affected primarily by margin calls under its warehouse and repurchase facilities since January 1, 2007, all of which have been met to date, as well as ongoing loan repurchases. The Company reported that it has paid approximately $190 million in margin calls on its facilities since January 1, 2007. Approximately two-thirds of those margin calls have been received and paid since February 15, 2007.
In addition, Accredited is seeking waivers and extensions of waivers of certain financial and operating covenants under its warehouse and repurchase facilities, including waivers relating to required levels of net income. The Company has been operating under various waivers under these facilities since December 31, 2006. There can be no assurance that the Company will be successful in receiving any of the required waivers.
Accredited also reported that it is pursuing certain cost restructuring initiatives, including further workforce reductions.
The Company continues to evaluate impairment of the goodwill established in its acquisition of Aames Investment Corporation (Aames) in the fourth quarter of 2006. In light of this evaluation, along with work that must be completed for the Companys year-end audit, it is unlikely that the Company will file its Annual Report on Form 10-K by March 16, 2007 as previously contemplated in its Notification of Late Filing on Form 12b-25 filed with the Securities and Exchange Commission on March 1, 2007.
This notice does not constitute an offer to sell or the solicitation of an offer to buy securities. Any securities offered by the company will not be or have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.