HomeBanc bankruptcy case to be converted to Chapter 7

By Jennifer Lanning Drey

Portland, Ore., Feb. 20 - HomeBanc Mortgage Corp.'s motion to convert its Chapter 11 bankruptcy case to Chapter 7 was granted Friday by the U.S. Bankruptcy Court for the District of Delaware, according to a source familiar with the case.

The court order is expected to be filed Monday, the source said.

As previously reported, the company filed a plan of liquidation and related disclosure statement but had not begun to solicit votes on the plan because the disclosure approval hearing had been postponed several times to resolve matters affecting feasibility of the plan.

When requesting case conversion, HomeBanc said it had concluded that given its resources, a feasible, confirmable Chapter 11 plan did not appear to be achievable.

The company also said its wind-down has been successful, and it had sold almost all of its assets.

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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