PMI Group in talks with private investor
Walnut Creek-based PMI Group, which filed a $736 million bankruptcy more than a year ago, said a private investor has expressed interest in a plan to pump cash into the mortgage insurer, according to a regulatory filing.
Shares of PMI finished unchanged Tuesday at about 1 cent each. At various points on Tuesday, the company's shares spiked about 20 percent higher.
"A well-known private equity investor" is interested in providing new capital into a reorganized PMI in exchange for a minority stake in PMI. The investor also would gain management control over a restructured PMI, according to the filing with the Securities and Exchange Commission.
PMI didn't identify the investor.
Reeling from a housing meltdown linked to the worst recession since the Great Depression, PMI filed for Chapter 11 bankruptcy in November 2011, listing $736 million in debts and $225 million in assets. PMI pays lenders after a homeowner defaults and a foreclosure fails to recover enough to cover the mortgage.
Chevron awards contract for drilling
San Ramon-based Chevron has awarded a $150 million contract to England-based oil services firm Subsea 7 to develop the Lianzi crude oil field near Africa.
The contract involves engineering, procurement, construction and installation. The field is located offshore Angola and the Republic of Congo.
The project would hire local residents of the two African nations, as well as local resources, Chevron said.
The offshore structures will be delivered during the second half of 2014, Chevron and Subseay estimated.