American Home Mortgages Moves to Squash Document Request
Bankrupt mortgage lender American Home Mortgage Investment Corp. has asked a judge to reject a major investor’s request for documents, saying that it would divert resources from more important things like the sale of its loan servicing business, Bankruptcy Law360 reported yesterday. In court documents filed Friday with the U.S. Bankruptcy Court for the District of Delaware, American Home noted that it had already received 80 objections to its sale motion and that it was facing a trio of adversary suits that had been “multi-tracked” for trial. As a result, American Home said it did not have time to compile the vast amount of information requested by Vantage Pointe Capital LLC, which is hoping to shed light on how the company managed to lose so much capital so fast in the days leading up to its bankruptcy filing. It added that numerous documents demonstrating the company’s decline in equity value were already publicly available and that the magnitude of the document request was unduly burdensome.
See Also: Bankruptcy New York

