NOVATION COMPANIES, INC. (OTCMKTS:NOVCQ) Files An 8-K Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure.
As previously disclosed by Novation Companies, Inc. (the Company)
in filings with the Securities and Exchange Commission (the SEC),
the Company and its subsidiaries NovaStar Mortgage Funding
Corporation, NovaStar Mortgage, LLC and 2114 Central, LLC (the
Subsidiaries, and together with the Company, the Debtors) filed
voluntary petitions (the cases commenced thereby, the Bankruptcy
Cases) in the United States Bankruptcy Court for the District of
Maryland (Baltimore Division) (the Bankruptcy Court) seeking
relief under chapter 11 of the United States Bankruptcy Code (the
Bankruptcy Code).
On April 4, 2017, the Company and NovaStar Mortgage, LLC (the
Plan Debtors) filed a first amended plan of reorganization (the
Amended Plan), amending the proposed plan of reorganization for
the resolution of the outstanding claims against and interests in
the Plan Debtors to Section 1121(a) of the Bankruptcy Code filed
with the Bankruptcy Court on February 14, 2017. On April 10,
2017, the Plan Debtors filed a first amended disclosure statement
(the Amended Disclosure Statement), amending the related proposed
disclosure statement filed with the Bankruptcy Court on February
14, 2017. The Amended Disclosure Statement provides updated
information concerning certain financial aspects of the Amended
Plan and addresses issues raised by certain creditors and the SEC
staff. By order of the Bankruptcy Court entered on April 11,
2017, the Bankruptcy Court approved the Amended Disclosure
Statement. Copies of the Amended Plan and Amended Disclosure
Statement are attached hereto as Exhibit 99.1 and
Exhibit 99.2, respectively.
The Bankruptcy Court has scheduled a hearing on confirmation of
the Amended Plan for May 31, 2017. May 24, 2017, is fixed as the
last day for filing and serving written objections to
confirmation of the Amended Plan.
The information in Item 7.01 of this Form 8-K, including the
Exhibits described herein and furnished herewith, are being
furnished and shall not be deemed filed for purposes of Section
18 of the Securities Exchange Act of 1934, as amended (the
Exchange Act), or otherwise subject to the liabilities of such
section, nor shall it be incorporated by reference into any
filing under the Securities Act of 1933, as amended, or the
Exchange Act, except as expressly set forth by specific reference
therein.
Forward-Looking Statements
Certain statements in this report regarding the Company and its
business that are not historical facts are forward-looking
statements within the meaning of Section 21E of the Exchange Act.
Forward-looking statements are those that predict or describe
future events, do not relate solely to historical matters and
include statements regarding management’s beliefs, estimates,
projections, and assumptions with respect to, among other things,
our future operations, business plans and strategies, as well as
industry and market conditions, all of which are subject to
change at any time without notice. Words such as believe, expect,
anticipate, promise, plan, and other expressions or words of
similar meanings, as well as future or conditional auxiliary
verbs such as would, should, could, or may are generally intended
to identify forward-looking statements. Actual results and
operations for any future period may vary materially from those
discussed herein. Some important factors that could cause actual
results to differ materially from those anticipated include: the
disposition and results of the Bankruptcy Cases; the Companys
ability to consummate the acquisition of an operating business;
decreases in cash flows from our mortgage securities; the
Companys ability to remain in compliance with the agreements
governing its indebtedness; the outcome of litigation actions
pending against the Company or other legal contingencies; the
Companys compliance with applicable local, state and federal laws
and regulations; compliance with new accounting pronouncements;
the impact of general economic conditions; and other risks that
are from time to time included in the Companys filings with the
SEC. Other factors not presently identified may also cause actual
results to differ. This report speaks only as of its date and the
Company expressly disclaims any duty to update the information
herein except as required by federal securities laws.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits.
| Exhibit No. | Description |
| 99.1 |
First Amended Joint Chapter 11 Plan of Reorganization of Novation Companies, Inc. and NovaStar Mortgage LLC, dated as of April 4, 2017. |
| 99.2 |
First Amended Disclosure Statement Regarding First Amended Joint Chapter 11 Plan of Reorganization, dated as of April 10, 2017. |
About NOVATION COMPANIES, INC. (OTCMKTS:NOVCQ)
Novation Companies, Inc. is seeking to acquire operating businesses or make other investments. The Company has not identified any specific acquisition targets. The Company owned Corvisa LLC (Corvisa), a developer and seller of cloud-based communication software under the CorvisaOne brand, telecommunications services, and implementation consulting services. The Company’s subsidiaries include Novation Holdings, Inc., NovaStar CDO Holdings, Inc., NCIP Holdings, LLC and 2114 Central, LLC. NOVATION COMPANIES, INC. (OTCMKTS:NOVCQ) Recent Trading Information
NOVATION COMPANIES, INC. (OTCMKTS:NOVCQ) closed its last trading session down -0.011 at 0.125 with 300 shares trading hands.