HomeBanc asks court to convert bankruptcy case to Chapter 7

By Caroline Salls

Pittsburgh, Feb. 4 - HomeBanc Mortgage Corp. has asked the U.S. Bankruptcy Court for the District of Delaware to convert its Chapter 11 bankruptcy case to Chapter 7, effective Feb. 23, according to a Tuesday court filing.

According to the motion, although the company has filed its Chapter 11 plan of liquidation and related disclosure statement, it has not begun soliciting votes on the plan because the disclosure statement approval hearing has been postponed several times in order to resolve matters affecting feasibility of the plan.

"The debtors have reached the conclusion that, given their current resources, a feasible, confirmable Chapter 11 plan does not appear to be achievable at the current time," HomeBanc said in the motion.

HomeBanc said its wind-down has been successful, and it has sold almost all of its assets.

A hearing is scheduled for Feb. 20.

HomeBanc, an Atlanta-based mortgage banking business, filed for bankruptcy on Aug. 9, 2007. Its Chapter 11 case number is 07-11079.

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