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Anthracite Capital Files for Chapter 7

NEW YORK CITY-The REIT, which was externally managed by a unit of BlackRock, had been delisted from the New York Stock Exchange in December.

By Paul Bubny | Updated on March 17, 2010

NEW YORK CITY-Three months after defaulting on debt, Anthracite Capital Inc. has filed for Chapter 7 protection at US Bankruptcy Court here. In a statement, the New York City-based REIT, which is externally managed by a unit of BlackRock, cites that default as one of the factors that led its board of directors to authorize the Chapter 7 filing.

In its bankruptcy filing, Anthracite lists assets of between $101 million and $500 million and liabilities of between $501 million and $1 billion. Anthracite’s statement notes that in a liquidation, “it is likely that shareholders would not receive any value and that the value received by unsecured creditors would be minimal.” The court-appointed trustee for the Chapter 7 filing is Albert Togut of Togut Segal & Segal, according to court documents filed Monday afternoon; no hearing dates have been scheduled as yet.

A Chapter 7 filing had loomed as a possibility for the past several months. In its third-quarter results this past November, Anthracite reported net losses of $132.5 million for the first nine months of 2009, following full-year losses of $258 million in 2008, and said its unrestricted cash and equivalents had dwindled from $9.7 billion at the start of the year to $297 million as of Sept. 30.

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