Fieldstone bankruptcy plan OK'd by judge

Columbia subprime lender to reorganize

Chief Information Officer John Camp will stay on at Fieldstone, though chief executive Michael J. Sonnenfeld has resigned. Planet Financial CEO Dennis Neubert will become Fieldstone's chief executive when the transaction closes, expected this month.

"There's so much turmoil in the industry," Sonnenfeld said yesterday. For Planet Financial to keep "the core of the infrastructure intact and retain some jobs is really a very positive outcome."

Sonnenfeld founded the company in 1995, taking it public 10 years later amid a housing bubble, when home sales peaked. When Fieldstone filed for bankruptcy, it had $121 million in liabilities, but just $15 million in assets, court records showed.

U.S. Bankruptcy Judge James F. Schneider commended Sonnenfeld for his personal expenditures of time and money during the bankruptcy process, as well as the other dedicated and remaining employees.

"Without their help and conscientious service, this day would not have happened," he said. "This has not been an easy case."

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