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American Home Mortgage's new chapter opens in bankruptcy court.
Byline: Daniel Wagner
Aug. 7--American Home Mortgage's new chapter starts Tuesday in bankruptcy court in Wilmington, Del.
Starting a process that lawyers and other experts consider complicated and likely to be lengthy, an opening bankruptcy hearing is scheduled for 3 p.m. Tuesday. The court is expected to review and accept the motion for Chapter 11 bankruptcy protection.
The judge will consider "first-day" motions intended to help the company continue operations during bankruptcy proceedings. In American Home's case, these include requests for permission to continue paying utilities, liability insurance, the wages of about 1,000 remaining employees and the terms of its financing with WL Ross & Co. Llc.
After its spectacular collapse, American Home Mortgage Investment Corp. is…
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