Luminent files bankruptcy

Luminent Mortgage Capital Inc., a Philadelphia investor in residential-mortgage-related securities, today said it has filed for bankruptcy protection.

In July, Luminent had suspended payments to unsecured creditors while it looked at ways to restructure and recapitalize its balance sheet.

The company said in a statement today that, under terms of its proposed reorganization, it "does not expect any value to be available to" existing holders of its common stock or subordinated creditors.

Over-the-counter shares fell 7 cents, to 2 cents, in morning trading.

Bloomberg News said the company listed debt of $484.1 million and assets of $13.4 million as of July 31 in documents filed with the bankruptcy.

In its statement today, Luminent said it filed for protection Friday in Baltimore under Chapter 11 of the U.S. Bankruptcy Code.

Just prior to the filing, the company said, it executed a forbearance agreement with major creditors Arco Capital Corp. Ltd., WAMU Capital Corp. and others who have agreed to vote in favor of the Chapter 11 reorganization plan.