The business stories that matter, by Fortune's Colin Barr
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May 19, 2008, 4:27 pm

Thornburg needs more time

Thornburg Mortgage (TMA) needs more time to file its quarterly report with the Securities and Exchange Commission. The Santa Fe, N.M., jumbo mortgage lender said it expects to post a “substantial net loss” for the quarter ended March 31, due in part to “declines in the fair value of its mortgage-backed securities portfolio.” But it won’t know the size of that loss for sure till June 2, when it expects to report its quarterly numbers and hold a conference call with investors.

The company was due to file first-quarter numbers last week, but it wasn’t able to do so because it’s working on the valuation analysis and appropriate accounting for its March 31 capital-raising effort. In that deal, Thornburg staved off bankruptcy by selling more than 90% of itself to new investors who received compensation including warrants to buy shares for a penny apiece. With Thornburg stock having traded in Monday’s postclose action at 65 cents a share, which is just half of their level at the time of the big stock sale, the gap between the stock price and those warrants is starting to look uncomfortably narrow.

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Colin Barr covers business and finance for Fortune.com. Previously he was an editor at TheStreet.com and author of the weekly Five Dumbest Things on Wall Street column, and an editor at Dow Jones Newswires.
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