First Magnus Files for Chapter 11

 

First Magnus Financial Corp., the closely held Arizona mortgage lender that shut down operations and laid off nearly 6,000 workers last week, today filed for Chapter 11 bankruptcy protection from its creditors. In a filing with the U.S. Bankruptcy Court in Tucson, Ariz., the company listed $812.5 million in liabilities and $942.1 million in assets. It said it has between 25,000 and 50,000 creditors. On its Web site last week, First Magnus blamed "the collapse of the secondary mortgage market" for its decision to shut down. The company made loans throughout the U.S., billing itself as the country’s largest privately held mortgage lender. In 2004, it was on Inc. magazine’s list of the fastest-growing privately held U.S. companies.

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