Thornburg Mortgage plans to file for Chapter 11

SANTA FE -- Thornburg Mortgage says it expects to file for Chapter 11 bankruptcy protection and sell or liquidate its remaining assets, then go out of business.

The company has been hit hard since mid-2007 by the mortgage and credit market crisis. Its mortgage lending volume declined and it was forced to drastically reduce the value of investments in mortgage securities as investors shied away.

Losses tied to write-downs on its mortgage-backed bonds led to margin calls in 2007 and again in 2008.

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Thornburg's stock was delisted from the NYSE in December after failing to meet a minimum standard that its average closing price remain above $1 over 30-consecutive trading days.

The separate Thornburg Investment Management is not affected by the planned bankruptcy filing.