"Item 4.01 - Changes in Registrant’s Certifying Accountant.
On March 27, 2007, Grant Thornton LLP (“Grant Thornton”), the registered independent public accounting firm for Accredited Home Lenders Holding Co. (the “Company”), verbally advised the Company and the Audit Committee of the Board of Directors of the Company (the “Audit Committee”) of its resignation as the Company’s independent auditors. Grant Thornton further advised that it declined to complete the audit of the Company’s financial statements for the year ended December 31, 2006. On March 30, 2007, Grant Thornton provided the Audit Committee with a letter dated March 27, 2007 regarding its resignation as the Company’s independent auditors. A copy of that letter is attached as Exhibit 16.1 hereto."
The stock closed at $8.48 and is trading at $9.51 after hours. They are evaluating their strategic alternatives.
As you probably know, Fallon Farallon has stepped up to the plate. Here is the the profile of their current holdings. Between their accounts and their managed accounts, they have a total of $52.3M which as of yesterday's close was worth about $15M for a stunning 71% loss. I lifted this information from the filing which you can review for yourself here.
I suppose, then that they had plenty of incentive for Fallon Farallon to get in there and salvage something.
Here are some of the loan terms that you might find interesting. Note the non-default interest rate of 13% and the default interest rate of 17%.
The loan doc is crafted so that there are minimums for liquidity. So the REIT's dividend as well as any federal tax refund for 2006 and 2007 will serve as collateral should liquidity levels fall below stated requirements.
These are just a few salient points that you might find of interest.
It's also worth noting that Accredited bough Aames Capital--who was in the same business of sub-prime mortgages.