LUM reaffirmed their dividend ONE WEEK AGO and said they had plenty of liquidity.
Today, LUM announced today that, since August 3, 2007, the mortgage industry, and the financing methods that the mortgage industry relies upon, have deteriorated significantly and in an unprecedented fashion. Effectively, the secondary market for mortgage loans and mortgage-backed securities has seized-up. As a result, Luminent is simultaneously experiencing a significant increase in margin calls on its highest quality assets and a decrease on the financing advance rates provided by its lenders.
In a Board of Directors meeting today, Luminent's Board unanimously voted to take the following actions:
-- The Board of Directors suspended payment of Luminent's second quarter
cash dividend of 32 cents per share on Luminent's common stock.
-- The Board of Directors extended the maturity of the outstanding
commercial paper issued by Luminent Star Funding Trust I, a special
purpose subsidiary of Luminent, by 110 days.
-- The Board of Directors cancelled Luminent's second quarter 2007
earnings release conference call, scheduled for Thursday, August 9,
2007, at 10:00 a.m. PDT, to discuss its second quarter of 2007 results
of operations.
-- The Board of Directors delayed the filing of Luminent's quarterly
report on form 10-Q for the second quarter of 2007. Luminent's second
quarter of 2007 unaudited condensed financial information is attached
to this press release. Luminent's independent registered public
accounting firm has not completed a review of the financial information
for the three and six months ended June 30, 2007.
-- The Board of Directors authorized Luminent's senior management to
inform the New York Stock Exchange of these unfolding events and, as a
result, trading was halted in Luminent's common stock.
The Board of Directors currently is considering the full range of strategic alternatives to enhance Luminent's liquidity and preserve shareholder value during this period of market volatility.
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In other words, they are going belly-up just like AHM. |
