Entrust Cites Stock Pact, Financial Woes

Entrust Financial Services, a Denver-based mortgage banking company, has announced a stock purchase agreement under which Entrust Mortgage will become a subsidiary of BBSB LLC and after which Entrust Financial will have only nominal assets.Entrust Financial said the agreement provides that BBSB will buy all issued and outstanding shares of Entrust Mortgage in exchange for the cancellation of all Entrust Financial's obligations to BBSB and Entrust Mortgage and the assumption of certain obligations of Entrust Financial to third parties. Entrust Financial "has been unable to secure sufficient additional capital or enter into a transaction with a strategic partner that would allow the company to continue its operations," the company said. Entrust Financial said its board will continue to analyze the company's strategic options after the stock sale. The company can be found online at http://www.entrustfs.com.