Accredited Says It May Not Survive

Accredited Home Lenders, San Diego, said Thursday that it may not continue to operate as a "going concern," sending its stock price down 25% to just over $6 a share.According to the Quarterly Data Report, Accredited is the nation's 18th-largest subprime funder. The company cited deteriorating conditions in the market, including rising delinquencies and early payment defaults. During the first five months of the year it repurchased $152 million in loans and paid out an additional $39 million in cash to investors to settle loan repurchase-related demands. In June Accredited agreed to be acquired by private equity firm Lone Star for $400 million in a transaction that valued the company at $15.10 a share. There is now speculation that Lone Star will try to greatly reduce the price it will have to pay for the lender.