Shares of San Diego subprime lender Accredited Home Lenders Holding Co. plunged 63 percent to $4.24 in midday trading March 13 on the Nasdaq after the company said it wouldn’t be able to file its year-end financial results on time.
The company also said it was “exploring various strategic options,” including raising additional capital, to provide it with flexibility as it retains and sells loans it has made recently.
Accredited said its cash resources were affected by recent margin calls from its investment banks, and it repaid $190 million on such calls since Jan. 1.
The company said it is seeking waivers and extensions of waivers of certain financial and operating agreements with credit providers, including waivers related to levels of net income.
On Feb. 14, Accredited reported a 2006 net profit of $57.7 million, compared with a net profit of $155.4 million in 2005.
Earlier this month, Accredited shares, traded under LEND, were above $22, and a year ago, were above $50.
, Mike Allen