Hanover to Merge With JWH Holding

Hanover Capital Mortgage Holdings Inc., a financially troubled real estate investment trust based in Edison, N.J., has announced an agreement to merge with JWH Holding Co., the parent company of Walter Mortgage Co. and Jim Walter Homes. JWH Holding is a wholly owned subsidiary of Walter Industries Inc., a producer and exporter of U.S. metallurgical coal, which plans to distribute 100% of its interest in JWH Holding to its shareholders. Before the distribution, Jim Walter Homes will be sold or otherwise separated from JWH Holding and will not be part of the spinoff entity, Hanover said. The merger will occur immediately after the spinoff, and the combined company, named Walter Investment Management Corp., will continue to operate as a publicly traded REIT. "Walter Mortgage Co. brings a strong balance sheet and track record to the combined companies," said John A. Burchett, Hanover's chairman and chief executive officer. After the merger, the new company is expected to be headquartered in Tampa, Fla. Hanover's stock, which trades on the American Stock Exchange, has a 52-week high of $2.15 per share and a 52-week low of only $0.08. It was trading at $0.25 per share late Wednesday morning. Hanover can be found online at http://www.hanovercapitalholdings.com.