Walter Investment Management Corp. was supposed to prosper by snapping up mortgage cast-offs from big banks at fire-sale prices. Instead, Walter is belatedly joining the list of companies burned by the U.S. housing crisis, Bloomberg News reported today. The mortgage servicer and lender faces a deadline today to get creditors on board with its bankruptcy plan, and needs at least two-thirds of its term-loan and bond holders to agree for its restructuring to take effect. About half had signed up by the end of last week, according to a statement Friday from the Fort Washington, Pennsylvania-based company. Walter’s pre-packaged chapter 11 plan, which would be filed by late November, would cut the company’s $2.1 billion corporate debt load by about $700 million, and ideally would include some recovery for holders of Walter’s convertible notes and existing stock, according to the statement.
