Luminent asks court to reconsider DIP motion, says financing critical

By Jennifer Lanning Drey

Portland, Ore., Oct. 6 - Luminent Mortgage Capital Inc. asked the U.S. Bankruptcy Court for the District of Maryland to reconsider a prior order denying the company access to $3.2 million of debtor-in-possession financing from Arco Capital Corp., Ltd., according to a Monday filing.

At a Sept. 30 hearing, a federal judge sided with Luminent's official committee of unsecured creditors and denied the DIP facility on the grounds that it provided improper waivers of rights to third parties.

In Monday's filing, Luminent said immediate access to the DIP financing is critical to its ability to maintain its business, comply with obligations under its plan support agreement and confirm its proposed plan of reorganization.

Luminent said it had made revisions to the proposed final order that addressed the concerns raised by the court in the denial order.

Luminent, a San Francisco-based real estate investment trust that invests in mortgage-backed securities and loans, filed for bankruptcy on Sept. 5. Its Chapter 11 case number is 08-21389.

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