I have posted before on IMH Secured Loan Fund. This is an Arizona-based mortgage loan company that made early-stage development loans to primarily home builders. It has most of its mortgage investments in California, Nevada and Arizona, but has also made loans in other parts of the country. It announced that is suspending withdrawals and new capital. It's 8-K stated the following:
Management PoliciesThe 8-K said that since the credit crisis started it has experienced unprecedented withdrawal requests. This is not surprising. What is surprising is how much money IMH has raised over the past year ($127 million of new investor contributions through the first six months of 2008) despite problems in the credit market and the housing market. The third quarter 10-Q should provide more insight.
• Maintain capital to honor all Fund commitments and obligations.
• Manage and protect the existing portfolio effectively.
• Remain steadfast against “fire-sale” liquidation of Fund assets.
• Continue to make meaningful pro-rata cash distributions on a monthly basis to Fund members.Management Actions
• The Fund will suspend accepting any additional member capital.
• The Fund will suspend re-investing monthly distributions.
• The Fund will pay all future monthly distributions in cash.
• The Fund will cancel all pending redemption requests in order to safely maintain capital for managing, protecting and preserving Fund assets.
• The Fund will not accept any new redemption requests.
• The Fund will continue to work toward meaningful distributions to its members.