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Let Thornburg's Demise Be a Lesson to You

Thornburg to Lead in Big Home Loans, Goldstone Says (Update1)

By David Mildenberg

www.bloomberg.com/apps...

The new investors include MatlinPatterson Global Opportunities Partners III L.P. and Richard Rainwater, former chairman of Crescent Real Estate Equities Co., according to regulatory filings. Rights permitting new investors to demand changes in operations and replace directors won't preclude his work, said Goldstone, who declined to name other parties who committed capital.

Greater Risks

``Their incentive and their motivation is to try to allow the company to return to some sort of normalcy,'' he said. ``They are looking for much greater than market-based returns because they are taking much greater than market-based risks.''

Five of Thornburg's 10 directors will be replaced with nominees designated by ``certain investors,'' the company said on April 1. It's not clear when those changes will be made, Goldstone said.

To contact the reporter on this story: David Mildenberg in Charlotte, North Carolina at dmildenberg@bloomberg....