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Accredited REIT Liquidating

JAN 28, 2013 12:12pm ET
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The shareholders of Accredited Mortgage Loan REIT Trust Inc., San Diego, have approved the plan of liquidation for the business. Under the plan, Accredited REIT will continue to collect amounts payable to it, dispose of its remaining assets and make periodic distributions to its shareholders.

The REIT is a subsidiary of Accredited Home Lenders Holding Co., the former high-flying subprime mortgage lender which filed for bankruptcy in 2009 (the case is still active). Accredited Home created the REIT in May 2004 to hold its mortgage assets.

It has received additional payment from the bankruptcy’s liquidating trust. Accredited REIT’s board has declared a partial liquidating distribution to the holders of its 9.75% Series A perpetual cumulative preferred shares of almost $20.5 million, or $5 per share. The distribution will be paid on Feb. 22.

With this payment, Accredited REIT will have given its preferred shareholders $59 million, or $14.50 per share.

Although the release says the REIT has received its last payment from the liquidating trust, it may get more money from the consolidated holding company’s estate but the timing and amount is beyond its control.

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