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First Guaranty Approved to Borrow $11 Million to Fund Bankruptcy

July 1, 2022, 8:30 PM

First Guaranty Mortgage Corp., a non-bank lender backed by bond giant Pacific Investment Management Co., won court permission to borrow $11 million to fund its bankruptcy case as it tries to quickly liquidate a remaining loan portfolio and reorganize.

US Bankruptcy Judge Craig T. Goldblatt gave the company temporary approval for the loan after two banks that helped fund First Guaranty’s operations dropped their objections. Goldblatt also gave the company permission to sign a deal to fund about $175 million in mortgages it had in its pipeline at the time it filed bankruptcy.

The company will return ...