Thornburg delays earnings report

Mortgage lender pushes earnings release back 10 days, needing time to determine the value of sold investments.

June 2, 2008: 4:40 PM EDT

SANTA FE, N.M. (AP) -- Mortgage lender Thornburg Mortgage Inc. said Monday it will need more time to file its first-quarter earnings report to determine the value of sold investments.

The company had previously said it would likely file its quarterly report with the Securities and Exchange Commission by June 2. It now says it will file the report by June 12.

The company said it was still evaluating the value of investments it sold earlier this year in a bid to raise cash.

"The company believes that it is in its and its shareholders' best interests to take the time needed to thoroughly and comprehensively evaluate and review these matters," the company said.

Last month, Thornburg had said it expects to swing to a big loss in its first quarter, mainly due to volatility in the mortgage market, which lowered the value of bonds backed by home loans.

Thornburg said it is also requesting a 90-day extension of an escrow agreement related to a preferred stock exchange offer. An extension to Sept. 30 would allow the $200 million held in escrow to be kept there to fund the exchange offer.

Under the escrow agreement, the company said it needs each investor's consent to retain the money in escrow. Thornburg said it has begun the process of obtaining those consents.

Thornburg also said it received a letter from the New York Stock Exchange on Thursday saying the company is not in compliance with a regulation mandating that the closing price of the company's stock cannot be lower than $1 for 30 consecutive trading days.

If it does not regain compliance, the company said it could be suspended or delisted from the exchange.

Thornburg said it will fix the problem and regain a $1 share price by carrying out a reverse stock split. The company said it will offer details about the split "at a later date."

Thornburg (TMA) shares fell 4 cents, or 4.9%, to 77 cents in after-hours trading. During regular trading, shares rose 2 cents to close at 81 cents.