FiNet, Monument File for Bankruptcy

FiNet.com Inc., San Francisco, and its wholly owned subsidiary, Monument Mortgage Inc., have filed separate petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.FiNet also announced the appointment of Harry R. Kraatz as chairman and chief executive officer, replacing L. Daniel Rawitch. Mr. Kraatz has assisted the companies for several weeks in the capacity of chief restructuring officer, FiNet said. The law firm of Manasian & Rougeau LLP has been retained as reorganization counsel. The companies said they plan to use cash, revenue generated from certain business activities, asset sales, and post-petition financing to finance their operations and "seek business relationships that will enable the companies to benefit from their mortgage assets, the companies' $112 million net operating losses, and FiNet's status as a public company." FiNet is a financial services holding company, and Monument Mortgage provides traditional and online mortgage services to lenders, mortgage brokers, real estate agents, and consumers. FiNet can be found on the Web at http://www.finet.com.