American Home Makes It Official

American Home Mortgage Investment Corp., Melville, N.Y., has filed a petition under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.As part of its filing, the firm received $50 million of debtor-in-possession financing from an affiliate of WL Ross & Co. To lead the Chapter 11 process, American Home has hired Kroll Zolfo Cooper and its chairman, Stephen Cooper, a specialist in troubled business situations. In its statement, American Home said the filing gives it the opportunity to achieve the best possible value for its creditors as well as permit an orderly wind-down of the real estate investment trust. However, it later added that any sale of its remaining assets is unlikely to be sufficient to pay its creditors in full. American Home shut down its mortgage production operations on Aug. 1, but it is maintaining its thrift and servicing businesses. Milestone Advisors LLC is American Home's adviser, and Young Conaway Stargatt & Taylor LLP is its legal counsel for the bankruptcy. The mortgage REIT can be found online at http://www.americanhm.com.