Anthracite Shares Drop Sharply After Loan Default

SAN FRANCISCO (AP) — Shares of Anthracite Capital Inc., a real estate investment trust based in New York, fell Wednesday after the company defaulted on $79.3 million in debt and said there is a chance the company would be forced to file for bankruptcy.

Shares fell 15 cents, or 62 percent, to 9 cents in afternoon trading. The stock was delisted Wednesday by the New York Stock Exchange because of its low price. It is now trading on the pink sheets under the ticker ACPI.PK.

The default on the senior notes with varying interest rates and due dates could accelerate the expiration of yet other debt, thus putting the company's future at risk.

"If acceleration were to occur, the company would not have sufficient liquid assets available to repay such indebtedness and, unless the company were to obtain additional capital resources or waivers, the company would be unable to continue to fund its operations or continue its business," Anthracite said in a statement.

Deutsche Bank, which is a secured lender, has said it intends to take the collateral under a repurchase facility. And the company said its cash is now being diverted to an account for the benefit of its secured bank lenders.

Anthracite also said that if the company was forced to file for bankruptcy, current shares would be worthless.

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