Question-and-Answer Session
Operator
(Operator instructions) The first question comes from Rick Shane of Jefferies & Co. Your line is open.
Rick Shane – Jefferies & Co.
Thanks, guys. I appreciate all the discussion on the liquidity and funding side. But I have to admit I get a little bit confused in all the terminology because of all of the different funding structures. My understanding or from reading the 10-Q is that there is a $355 million senior secured facility that matures this August. Last Q, you said there was $140 million borrowed on that facility. Have you renewed that facility and what is the current borrowing on it?
David Gunter
That facility is currently under negotiation. This is Dave. We are working with JP Morgan and other lenders. And we are going to disclose in our 10Q for the second quarter which comes out today how much is outstanding on each line. The amount outstanding at the end of the month is probably similar to the number that you are thinking about. We had an auction that we will talk about to term out or to renew the facility so that work goes underway. The facility would normally expire August 13th. It was a 364-day facility and so we still are doing that work and expect funding going into the future.
Rick Shane – Jefferies & Co.
And what would happen if you were unable to roll that facility over? Could you (inaudible) somewhere else?
David Gunter
Yes, that would be the contingency plan. If you did not roll that facility over for any given reason, you still have by contract the availability to term out over an 18-month straight line period the mortgage servicing rights, and then of course the PSAs, you would take to the unused portion of other financing facilities.
Rick Shane – Jefferies & Co.
Got it. Thank you. And then other question I actually remember when you got involved with the BOK transaction. What changed strategically? Why is that no longer an attractive asset? My recollection was that the acquisition price was $8 million to $10 million, and you are describing a $5 million loss here. So you are basically writing off virtually the entire acquisition. Is that correct?
Bill Erbey
No. We had another $5 million that we invested approximately into BOK. The original advice that we received in the business from our counselors on that both our law firm and our accounting firm was that we could use that facility – that institution as a financing vehicle for both PMSRs and/or advances. And in fact, the business plan was filed with the German regulatory authorities with that in mind. They subsequently changed their mind with respect to – shall we say non-German assets in that facility even though our original plan was approved. So essentially it has very limited value for us going forward as a vehicle to finance our core business operation and we've made the election or the decision rather to really sell as you can see almost every asset that's not associated with our two core business lines. You asked another question with regard to that, Rick, I'm sorry.
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