[2] The week before the filing, the company said that many of its lenders had demanded their money back, and that AHM was also unable to deliver on about US$800 million in commitments for housing loans, and had laid off nearly ninety percent of its 7,000 employees.

[1] On July 31, 2007, the company announced that it can no longer fund home loans and may liquidate assets, putting its survival in doubt.

"The chances are pretty high that the company either goes bankrupt or materially restructures, leaving little value for shareholders," said Bose George, an analyst at Keefe, Bruyette & Woods Inc. in New York.

Detailed information regarding payroll, benefits and other human resource related matter will be available Friday morning for distribution in the office.

American Home Mortgage Servicing Inc. was sold to Wilbur Ross & Co. LLC, as part of the bankruptcy liquidation, in November 2007.

[10] In October 2012, Ocwen announced plans to buy Homeward Residential Holdings, Inc. from WL Ross & Co. for $750 million.

On December 14, 2009, the court approved a final settlement valued at $6.5 million for the former employees of American Home Mortgage.