ECC Capital Corporation Announces Plans to File Form 15 and Deregister
July 25 2007 - 7:00AM
PR Newswire (US)
IRVINE, Calif., July 25 /PRNewswire-FirstCall/ -- ECC Capital
Corporation (OTC:ECRO), a mortgage finance real estate investment
trust (REIT) that invests in residential mortgage loans, today
announced that it intends to file a Form 15 with the U.S.
Securities and Exchange Commission to voluntarily deregister its
common stock under the Securities Exchange Act of 1934 on or about
July 30, 2007. ECC Capital is eligible to deregister because it has
fewer than 300 holders of record of its common stock. Upon filing
the Form 15, ECC Capital's obligation to file certain reports with
the SEC, including Forms 10-K, 10-Q, and 8-K, will immediately be
suspended. ECC Capital expects that deregistration of its common
stock will become effective 90 days after the date of filing of the
Form 15 with the SEC. While no longer required by the SEC after
deregistering, ECC Capital presently intends to provide quarterly
and annual information regarding its performance to shareholders by
posting information on its website (http://www.ecccapital.com/) at
least through the remainder of calendar year 2007. ECC Capital's
common stock is currently quoted on the Pink Sheets under the
symbol "ECRO.PK", however, after deregistering ECC Capital can
provide no assurance that its common stock will continue to be
quoted on the Pink Sheets. ECC Capital is deregistering because it
believes that the incremental cost of compliance with the
Sarbanes-Oxley Act of 2002 and other public company reporting
requirements does not provide a discernable benefit to ECC Capital
and is not in the best interest of its shareholders. ECC Capital
believes that the cost savings derived from deregistering will be
financially meaningful. ECC Capital continues to explore other
opportunities to maximize shareholder value. About ECC Capital
Corporation ECC Capital, headquartered in Irvine, Calif., is a REIT
that invests in residential mortgage loans. ECC Capital is
currently structured to qualify as a REIT by managing a portfolio
of nonconforming loans. As a REIT, ECC Capital is required to
distribute dividends to its stockholders from net income generated
from the spread between the interest income on its assets in its
portfolio and the costs of capital to finance its acquisition of
these assets. Safe Harbor Regarding Forward-Looking Statements
Certain statements contained in this press release, including ECC
Capital's expectations regarding the deregistration of its common
stock, the potential cost savings to be derived from the
deregistration and ECC Capital's ability to post financial
information on its website, may be deemed forward-looking
statements under federal securities laws and ECC Capital intends
that those forward-looking statements be subject to the safe-harbor
created thereby. These forward-looking statements are based on
current expectations and assumptions and are subject to risks and
uncertainties, which could affect ECC Capital's future plans. ECC
Capital cautions that these statements are qualified by important
factors that could cause actual results to differ materially from
those reflected by the forward-looking statements. These factors
include, but are not limited to: (1) the impact of losses and
delinquencies from ECC Capital's residual interests in
securitizations; (2) the tightening of credit standards; (3) the
condition of the U.S. economy and financial system; (4) interest
rates and the subsequent effect on the business; (5) ECC Capital's
ability to obtain quality loan servicing and default management
services; (6) the stability of residential property values; (7) the
potential effect of existing or new state or federal laws or
regulations; (8) ECC Capital's ability to implement successfully
its business plan; (9) continued availability of credit facilities
and access to the securitization markets or other sources of
capital; (10) ECC Capital's ability and the ability of its
subsidiaries to operate effectively within the limitations imposed
on REITs by federal tax rules; (11) ECC Capital's ability to retain
qualified personnel; and (12) other factors and risks discussed in
ECC Capital's Annual Report on Form 10-K for the year ended
December 31, 2006, as amended. You should also be aware that,
except as otherwise specified, all information in this news release
is as of July 25, 2007. ECC Capital undertakes no duty to update
any forward-looking statement to conform the statement to actual
results or changes in ECC Capital's expectations. For Further
Information: AT THE COMPANY: Roque A. Santi President and Chief
Financial Officer (949) 955-8730 DATASOURCE: ECC Capital
Corporation CONTACT: Roque A. Santi, President and Chief Financial
Officer of ECC Capital Corporation, +1-949-955-8730, Web site:
http://www.ecccapital.com/
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