December 10, 2007 17:40 ET

C-BASS LLC Completes Sale of Litton Loan Servicing

Successfully Reaches Agreement With 48 Secured and Unsecured Creditors; Proceeds From Sale of Subsidiary Will Be Used to Pay Down Company Debt; Allows for Assets of the Company to Be Paid Out Over Time

NEW YORK, NY--(Marketwire - December 10, 2007) - Credit-Based Asset Servicing and Securitization LLC ("C-BASS") today announced that it has successfully completed the sale of Litton Loan Servicing to Goldman Sachs. The sale of Litton, a recognized industry leader in mortgage default management, was a key step for C-BASS (the "Company") to reach a long-term agreement with its secured and unsecured creditors on November 13, 2007. The terms of the transaction were not disclosed.

Since late July 2007, the company had been under liquidity pressure from its lenders and worked with numerous potential counterparties to come up with a solution that would satisfy the Company's creditors and equity holders. In August 2007 the Company hired The Blackstone Group to assist in solving its liquidity challenges. The Blackstone Group, working with management and Hunton & Williams, C-BASS' legal advisors, created a solution that allowed the Company to reach a consensual out of court restructuring with all its creditors.

The agreement provides a framework for the Company to manage its portfolio assets, allowing the underlying cashflow to repay the secured and unsecured creditors of C-BASS over time.

Information for Customers of Litton Loan Servicing

Customers with loans that are serviced by Litton Loan Servicing will not be affected by this event. Customers should continue to make their monthly payments as usual and may contact Litton at 1-800-247-9727 or at

About C-BASS

C-BASS is a New York-based company, long regarded as a leading issuer, servicer and investor in credit-sensitive residential mortgage assets. C-BASS is a limited liability company capitalized by MGIC Investment Corporation (NYSE: MTG), Radian Group Inc. (NYSE: RDN), and C-BASS management. MGIC Investment Corporation, based in Milwaukee, WI, is the parent of Mortgage Guaranty Insurance Corporation (MGIC), and Radian Group Inc., based in Philadelphia, PA, is the parent of Radian Guaranty Inc. For more information, please visit

About Litton Loan Servicing

Houston-based Litton Loan Servicing is a mortgage servicing company specializing in loss mitigation and default management for residential loans. Since its inception in 1988, Litton has grown from a handful of employees servicing customers exclusively in Texas to more than 1,000 employees servicing more than 400,000 customers nationwide. Throughout its substantial growth, Litton has maintained its primary objective of preserving homeownership and keeps thousands of customers facing foreclosure in their homes each year. For more information, please visit