SouthStar Funding, LLC, the Subprime Lender based in Sandy Springs, has filed a Chapter 7 petition in Atlanta. Case No. 07-65842 (filed March 11, 2007). The company announced it was closing its doors last week. The petition lists assets and debts of over $100 million. According to news reports, the company did over $6 Billion in loans last year.
From the Atlanta Business Chronicle –
The Sandy Springs, Ga.-based subprime lender had more than 600 employees in 30 states, with 2006 mortgage production exceeding $6 billion, according to the company’s Web site. The firm closed its other offices in Orlando, Fla., and Denver first, and followed with the shuttering of the Atlanta headquarters on Monday.
“When I came in Friday morning, I had no anticipation of shutting down,” said Mike Fierman, Southstar executive vice president. “We just took the whole company to the beach last month on a trip.”
The closing also came as a surprise to some local mortgage lenders.
In 2005, the company was named in the Inc. Magazine Top 500 companies.