- Obama says Boosting US Jobs is Top Priority
- More Consumers Giving 'Black Friday' the Cold Shoulder
- Prepare For Large Decline In Stocks, Next Year?
- Hewlett-Packard Earnings Rise, Match Guidance
- HP Comes in As Expected; Is It Time to Buy?
- Cramer: What Monday’s Housing Number Really Means
- Why the Dollar Will Likely Stay Weak for Some Time
- Bear, Lehman Execs Weren't Wiped Out by Crisis: Study
- How Real Estate Investors Skew Housing's Reality
- Can Murdoch Help Bing Challenge Google and Shift the Content Equation?
- HP's Mark Hurd
- HP Comes in As Expected; Is It Time to Buy?
- 9 Stocks That Play Rising Water Costs: Strategists
- Weis' Deal Likely Won't Change Big Money Contracts
- Gold Prices Can Double in 3 Years: Portfolio Manager
- Nov. 23: Unusual Volume Leaders
- Help Wanted—Please Run $4 Billion University
- Apple Comes to AT&T's Rescue
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Paul: Audit the Fed
- Wave of Debt Payments Facing US Government
- HP Comes in As Expected; Is It Time to Buy?
- Prepare For Large Decline In Stocks, Next Year?
- Hewlett-Packard Profit Rises, Matches Guidance
- The Social Media Gaming Threat
- Why Amazon Rules Retail
- Holiday Travel Outlook
- Lyondell Urged to Consider Reliance Takeover Offer
Text Size 
Shares of Fremont General plunged to an all-time low on Tuesday after the real estate lender said it didn't believe it would be compliant with a loan covenant because of write-downs in its fourth quarter.
The company said it had received notice of covenant default from two unnamed parties who had purchased a total of $3.15 billion in residential sub-prime mortgage loans in March 2007. The covenant said that for two years following the sale of the loans, Fremont's tangible net worth wouldn't be allowed to fall below $250 million.
Fremont said it may need to record additional asset write-downs in its fourth quarter, which could require it to lower its regulatory capital. The company said that because of this, it couldn't confirm that it was compliant with the covenant, though it didn't believe it would be.
The stock [FMT
Loading...
()
] plunged more than 25 percent. Earlier in the trading session, the shares hit 46 cents, an all-time low. The shares are down almost 90 percent over the past 52 weeks.
Fremont said it was in discussions with the parties to seek a waiver of its guaranty requirement, but that if the discussions weren't successful, the purchasers could file a lawsuit against Fremont.
If litigation is pursued and Fremont isn't successful in defending itself, it said, it may not be able to continue to conduct business.
Print
Email
- The show attracts a big TV audience every year, but this year it may take on even more importance.
- …you'll want to be prepared. Tips for getting the most out of the post-Thanksgiving shopping frenzy.
- Congressman Ron Paul explains to Squawk Box why he’s pushing legislation to audit the Federal Reserve.
- CNBC’s Phil LeBeau took a test drive of GM’s flagship electric car. Here’s what he thought of the Volt.
- The energy company Power Efficiency is building tools that regulate the power electric motors use.
- CNBC’s technology reporter Jim Goldman guides you through the best gadgets to buy this holiday season.
Data is a real-time snapshot *Data is delayed at least 15 minutes