Credit Depot Going Out of Business

November 30, 1998, 2:00 p.m. EST 1 Min Read

Credit Depot Corp., Gainesville, Fla., has announced that it has ceased its loan origination operations and will seek an accommodation with creditors to liquidate the company.The company said it intends to remain open for a period to honor its mortgage loan funding commitments and to liquidate its warehoused loan portfolio. No distributions are expected to be available for stockholders. Credit Depot said the action stemmed from its belief that "there will not be a significant improvement in sales margins in the depressed secondary subprime mortgage market in the near future, and that the company does not have the financial resources to continue its loan operations with negative cash flow." Credit Depot's sole business was originating mortgage loans. Credit Depot's website address is http://www.creditdepot.com.

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