Court Approves ResMAE Plan of Reorganization

The U.S. Bankruptcy Court for the District of Delaware has issued a ruling confirming ResMAE Mortgage Corp.'s Plan of Reorganization.The ruling clears the way for ResMAE to emerge from Chapter 11 as an entity wholly owned by an affiliate of Citadel Investment Group LLC. ResMAE commenced its Chapter 11 case on Feb. 12, 2007 and made an agreement to sell certain assets of the company to affiliates of Citadel on March 6, 2007. ResMAE, based in Brea, Calif., has conducted operations and originated loans throughout the Chapter 11 process. In issuing his ruling, Judge Kevin J. Carey found that the company had met all of the requirements necessary to exit from Chapter 11. "The decision represents a critical step for us as we move our business forward with renewed energy and excitement about the prospects of ResMAE and this important industry. The progress we have made in the last several months speaks to the resolve of our team along with the significant commitment that Citadel has made to ResMAE," said Jack Mayesh, chairman of ResMAE. Ken Griffin, president and CEO of Citadel, said, "ResMAE has built a solid platform in the subprime mortgage industry. While the last several months have been trying for the industry as a whole, we are on course to position ResMAE as an industry leader."