From today’s Arizona Daily Star: [Hat tip to MR!]
A bankruptcy judge tried to auction off some of First Magnus Financial Corp.’s assets Tuesday, but only one bidder showed up, and the judge put the sale on hold.
The failed mortgage lender intended to either sell about $8.5 million in construction loans and 29 foreclosed properties to Colorado-based Summit Investment Management LLC for about $6.4 million, or sell the assets at auction.
Judge James Marlar expressed reservations about the price of the proposed sale to Summit, which he said might be too low for both the loans and the 29 properties taken by First Magnus through foreclosure.
John Clemency, an attorney representing First Magnus, told the judge that the company had shopped the assets around to numerous potential buyers, and Summit’s offer was the best it could find.
Marlar said he would take the matter under advisement.
Marlar said "this seems like a giveaway."
