Aegis Mortgage resolves objections to bid procedures for loan-servicing rights sale

By Rebecca Melvin

New York, Jan. 30 - Aegis Mortgage Corp. has resolved concerns relating to bid procedures for the proposed sale of its loan-servicing rights covering eight loan pools, according to a filing Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The filing said that a proposed order, incorporating revisions, would be submitted to the court for approval.

A hearing scheduled for Wednesday had been cancelled because three filed objections or responses to the procedures were resolved. An attorney for the company declined to comment on what the revisions were.

Among responses to the procedures filed with the court was a statement and reservation of rights from Lehman Brothers Bank FSB.

As previously reported, Aegis is selling assets that consist of the rights to service loans to each pool and the right to receive payment of related servicing fees. Bids are due by Feb. 11.

All the bids must be for at least $3 million plus the amount necessary to pay service advances on the loans. Closing is expected Feb. 29.

Bidders who submit an offer for all the servicing rights must include at $500,000 deposit, while bidders submitting an offer for part of the assets must include a deposit of 20% of the purchase price.

The minimum starting bid at auction will be the highest bid received by the bid deadline.

Aegis Mortgage, a Houston-based mortgage production franchise, filed for bankruptcy on Aug. 13. Its Chapter 11 case number is 07-11119.

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