Hanover Capital shareholders approve merger with Walter Investment

By Lisa Kerner

Charlotte, N.C., April 15 - Hanover Capital Mortgage Holdings, Inc. shareholders approved the company's merger with Walter Investment Management LLC, the financing business of Walter Industries, Inc., at a special meeting on Wednesday, Walter Industries said.

Walter Industries also announced that it has received a favorable ruling from the Internal Revenue Service regarding the partially tax-free nature of its spinoff of Walter Investment Management.

Both the merger and the spinoff are expected to be completed on Friday following the close of trading on the New York Stock Exchange.

The newly formed company, Walter Investment Management Corp., is expected to begin regular-way trading on the NYSE Amex on Monday, Walter Industries said.

On Sept. 30, 2008, Walter Industries announced it would separate its financing business from the company's core natural resources businesses.

As previously reported, Walter Industries will distribute 100% of its interest in JWH Holding Co., LLC to its shareholders. JWH Holding is a Walter Industries subsidiary and the parent company of Walter Mortgage Co. and Jim Walter Homes.

Jim Walter Homes will be sold or otherwise separated from JWH Holding.

Immediately after the spinoff, JWH Holding will merge with Hanover, a New Jersey-based real estate investment trust. The combined company will operate as a publicly traded real estate investment trust under the name Walter Investment Management Corp. and will be based in Tampa, Fla.

Walter Industries, based in Tampa, produces and exports metallurgical coal for the global steel industry; produces steam coal, coal bed methane gas, furnace and foundry coke and other related products; and operates a mortgage financing and affordable homebuilding business.

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