Metropolitan Mortgage files for Chapter 11

New York, Feb. 4 - Metropolitan Mortgage & Securities Co., Inc. said it and Summit Securities, Inc. made voluntary Chapter 11 filings in the U.S. Bankruptcy Court for the Eastern District of Washington, in Spokane.

The Spokane, Wash. companies said they expect that current bondholders and creditors will receive substantially all the equity in the reorganized company.

Metropolitan Mortgage listed $390 million of debentures and accrued interest and $162 million of other debt payable plus $1.362 billion of life insurance and annuity reserves as of June 30, 2003 in its most recent 10-Q filing with the Securities and Exchange Commission.

Total liabilities were $1.942 billion compared to $2.013 billion of assets.

The company said it has historically funded its investing activities through the sales of debentures and preferred stock, typically offered to the public on a continuous best-efforts basis through a subsidiary of Summit.

Metropolitan Mortgage invests in receivables and other investments and also sells annuities through its largest subsidiary Western United Life Assurance Co.

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