It's bankruptcy. The company announced
the not-too-surprising decision this morning.
The Reuters story
makes more sense than the press release:
NEW YORK (Reuters) - Thornburg Mortgage Inc (THMR.PK) said it plans to file for Chapter 11 bankruptcy protection and go out of business, making the provider of "jumbo" mortgage loans one of the largest casualties of the nation's housing slump and credit crisis. ...
Thornburg on Wednesday said it intends to sell or liquidate its remaining assets, with the assistance of the restructuring firm Houlihan Lokey Howard & Zukin Capital Inc. It also said it will not make an interest payment due March 31 on its senior subordinated notes maturing in 2015.
Keep watching SFR for more coverage of this story.
Update 4:50 p.m.-ish
: Here's a quote form tomorrow's New Mexican, in the form of a press release from the city.
Please note that Santa Fe Mayor David Coss is out of the country and therefore requests for his comment on this matter cannot be granted at this time.
City of Santa Fe Economic Development Division Response to Thornburg News
Due to the large volume of phone calls received by the City of Santa Fe Public Information Office on the news that Thornburg Mortgage plans to file for Chapter 11 bankruptcy protection, the city's Economic Development Division has issued the following statement:
The City of Santa Fe's Economic Development Division has been closely watching developments at Thornburg Mortgage since the housing crisis and economic recession began. As a long-time Santa Fe business which employs many people at high-wage jobs and contributes heavily through its philanthropic endeavors, Thornburg is a valuable member of Santa Fe's business community.
Today's news further emphasizes the importance of the work of the City's Economic Development Division to diversify the economy and create high-wage jobs. In these challenging economic times the City and its many partners are more committed than ever to helping people find and create work opportunities in Santa Fe.
Errmm... Official reassurances after the cut.
The City's Economic and Community Development staff have been working hard to get in front of the economic and home foreclosure crisis in many ways. Here are some of the projects that the City of Santa Fe is working on to ensure Santa Fe not only survives the economic recession, but that the city is positioned to come back stronger than when the nation entered into the crisis:
Ø Stimulus Money and Job Creation – The City of Santa Fe has already been identified to receive $781,600 in federal economic stimulus money for energy and conservation projects as well as $1.1 million for the Santa Fe Airport. Stimulus money has been or will be requested for other projects including water, transit and affordable housing as well as roadway infrastructure improvements. Staff is working to identify other stimulus funds which can help spur economic activity and job creation in Santa Fe.
Ø Business Retention and Expansion Program – Economic Development staff are developing a program to help Santa Fe businesses access resources for retention and growth; this includes, financing and technical assistance.
Ø “Santa Fe: Buy Into It” – This awareness campaign is a collaborative effort with local business groups and local media. It is designed to provide support for the local economy by re-circulating dollars and taking advantage of the multiplier effect. www.buyintoit.org
Ø Workforce Housing – The City's Office of Affordable Housing works proactively with the public, non-profit, and private sectors so low and moderate-income citizens have access to housing. Through capacity building, technical assistance, and regulatory mechanisms, the City of Santa Fe has built a network of strong cooperation and assistance in the community. These partnerships include the Homewise “Santa Fe Business Campaign for Homeownership,” in which Homewise works with local business owners to provide affordable housing for their employees, and a $600,000 Home Energy Efficiency Loan Program, which not only increases the value of homes and saves homeowners money over time, but also creates work for the Santa Fe's green collar workforce.
Ø Talent Task Force – A committee working to find solutions and facilitate better access to work opportunities for skilled people in Santa Fe.