Origen Financial Announces Sale of Unsecuritized Loans; Going Concern Raised on Financial Audit
March 17 2008 - 6:11PM
PR Newswire (US)
SOUTHFIELD, Mich., March 17 /PRNewswire-FirstCall/ -- Origen
Financial, Inc. (NASDAQ:ORGN), a real estate investment trust that
is in the business of originating and servicing manufactured
housing loans, today announced that as previously contemplated in
its press release dated March 13, 2008 and discussed on its
earnings call on March 14, 2008, it has completed the sale of its
unsecuritized loans and used the proceeds to pay off its warehouse
facility. Origen sold loans with an aggregate carrying amount of
approximately $176 million for net proceeds of approximately $155
million. In addition to paying off its warehouse facility and
settling the related hedge, Origen reduced the balance of its
supplemental advance residual facility by $4 million, leaving
approximately $46 million outstanding under this facility, and
retained approximately $1 million of the sale proceeds for
additional working capital. As Origen's warehouse facility is now
paid off, excluding bonds issued against its securitization
portfolio, Origen's remaining indebtedness consists of $46 million
under the supplemental advance facility and $15 million under
related party notes secured by Origen's rights to receive servicing
fees on its loan servicing portfolio. Origen also reported that its
audited financial statements for the fiscal year ended December 31,
2007, which statements were included in its Annual Report on Form
10-K filed with the Securities and Exchange Commission on March 17,
2008, contained an unqualified opinion from its independent
registered public accounting firm, Grant Thornton LLP, which
included an explanatory paragraph raising doubt about Origen's
ability to continue as a going concern. This announcement is made
in compliance with Nasdaq Marketplace Rule 4350(b)(1)(B), which
requires disclosure of receipt of an audit opinion that expresses
doubt about the ability of the company to continue as a going
concern for a reasonable period of time. Origen's continued
operations depend on its ability to meet its existing debt
obligations. Based on the intrinsic value of Origen's assets and
discussions it has had with third parties about possible strategic
alternatives, Origen believes it will be able to raise the
additional funds it needs on a timely basis. However, there is no
assurance that such funds will be available or will be available on
reasonable terms. Forward-Looking Statements This press release
contains various "forward-looking statements" within the meaning of
the Securities Act of 1933 and the Securities Exchange Act of 1934,
and Origen intends that such forward-looking statements will be
subject to the safe harbors created thereby. The words "will,"
"may," "could," "expect," "anticipate," "believes," "intends,"
"should," "plans," "estimates," "approximate" and similar
expressions identify these forward-looking statements. These
forward-looking statements reflect Origen's current views with
respect to future events and financial performance, but involve
known and unknown risks and uncertainties, both general and
specific to the matters discussed in this press release. These
risks and uncertainties may cause Origen's actual results to be
materially different from any future results expressed or implied
by such forward-looking statements. Such risks and uncertainties
include, among others, the foregoing assumptions and those risks
referenced under the headings entitled "Factors That May Affect
Future Results" or "Risk Factors" contained in Origen's filings
with the Securities and Exchange Commission. The forward-looking
statements contained in this press release speak only as of the
date hereof and Origen expressly disclaims any obligation to
provide public updates, revisions or amendments to any
forward-looking statements made herein to reflect changes in
Origen's expectations or future events. ORGN-G About Origen
Financial, Inc. Origen is an internally managed and internally
advised company that has elected to be taxed as a real estate
investment trust. Origen is based in Southfield, Michigan, with
significant operations in Ft. Worth, Texas. For more information
about Origen, please visit http://www.origenfinancial.com/.
DATASOURCE: Origen Financial, Inc. CONTACT: W. Anderson Geater,
Chief Financial Officer of Origen, 1-866-4-ORIGEN; or Leslie Loyet
of Financial Relations Board, +1-312-640-6672, , for Origen Web
site: http://www.origenfinancial.com/
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