Struggling mortgage lender Home Capital says it's in no rush to sell

The Canadian Press</span>
Published Friday, May 12, 2017 7:30AM EDT
Last Updated Friday, May 12, 2017 9:59AM EDT

TORONTO -- Cash-strapped alternative lender Home Capital says it has a number of interested buyers and investors, but selling itself or its assets is not the company's priority.

Speaking to analysts to discuss first-quarter results, board director Alan Hibben said Home Capital is exploring a number of strategic options but it's not rushing to sell.

Brenda Eprile, the board's chair, highlighted the two major challenges facing the struggling mortgage lender: a loss of investor confidence and dwindling funds.

Eprile says the Toronto-based lender is working diligently to resolve those issues and "right the ship."

Customers have been pulling out their deposits, which Home Capital uses to fund its mortgage lending, out of the company following allegations from Ontario's securities watchdog that the lender and three of its executives misled investors in their handling of a scandal involving falsified loan applications.

The company has vowed to defend itself against the allegations, which it says are without merit.

Lawyers for the three men haven't responded to requests for comment.

Shares of Home Capital slumped 8.42 per cent, or 91 cents, to $9.90 after the conference call.

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