Foreclosure Processor Prommis Holdings Files Chapter 11
Prommis Holdings LLC, which provides processing services for defaults and foreclosures in the residential mortgage industry, sought bankruptcy protection from creditors without citing a reason.
The company, based in Atlanta, listed debt of more than $50 million and assets of as much as $50 million in Chapter 11 documents filed today in U.S. Bankruptcy Court in Wilmington, Delaware. Ten affiliates also filed for bankruptcy.
Prommis officials determined that it’s “in the best interests of the company, its creditors, and other parties in interest,” to seek court protection under Chapter 11 of the U.S. Bankruptcy Code, according to court documents.
The company said in the filing that it plans to sell virtually all its assets in a court-supervised auction. No terms were disclosed.
Prommis is also seeking to implement retention and incentive plans for key employees, singling out those “who are essential to both the company’s ongoing business operations and their sale and wind-down efforts.”
The company helps mortgage servicers and law firms with foreclosure proceedings in 19 states and provides bankruptcy and loss-mitigation services throughout the U.S., according to its website.
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How ironic; its because of them I had to file BK to stop an illegal foreclosure on our property since they certainly had a hand in preparing the phony documents. “What goes around, comes around…..”