HomeGold asset sale falls $800,000 short of expectation

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McCullough has asked Bankruptcy Judge Thurmond Bishop to authorize the revision of the sales price for fees still owed on mortgages written by HomeGold from $14.925 million to $14.125 million, an $800,000 decrease.

Bishop is due to take up the request at a hearing Dec. 15.

As explained in court papers drafted by Rick Gleissner, an associate of McCullough, Credit-Based Asset Servicing and Securitization LLC, the prospective buyer, sought to pull out of the sale just days before it was to close.

The New York company was top bidder for the residual fees, which have a face value of $48 million, in an auction conducted Nov. 5. C-BASS officials maintained there were discrepancies in what it was buying.

Eleventh-hour negotiations resulted in agreement to the reduced sum, according to Gleissner.

So far, McCullough has been able to recoup about $25 million of the $275 million that HomeGold Financial and Carolina Investors, its Pickens-based subsidiary, said they owed customers when they filed for bankruptcy last spring.