Earlier, on November 11, Centerline's American MortgageAcceptance Company or AMAC unit was de-listed from the exchange, aresult of negative impacts that the company said were due to AMAC'ssuspension of investment activity beginning in late 2007.

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On Friday, Centerline reported a Q3 net loss of $157.3 millionor $3.03 a share compared to last year's profit of $9.45 million or$.16 a share during the same period. In light of the current NYSEshot across the bow, Centerline CEO and president Marc Schnitzersaid the company was outlining a plan for compliance.

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During the Friday conference call, Schnitzer cautioned that thecompany's stock price is not indicative of Centerline's overallbusiness performance. Still, he acknowledged that the concernsraised by the Q3 loss and recent stock exchange actions are"serious." Regarding the rules from the stock exchange, he said,"We plan to comply."

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In its third quarter company press release, Centerline saidoperating results were "impacted negatively by non-cash assetimpairment charges." Further, the company said that recent marketconditions--including the decline in its market capitalization, aswell as the federal government conservatorship ofFreddie Mac and Freddie Mae--had led it to conclude that there wasthe indication of goodwill impairment.

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Regarding Freddie and Fannie, inSeptember, the company had said it supported the government'stakeover--a move that Schnitzer said he believed could have a"steadying impact on confidence in the mortgage financingmarkets."

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But on Friday, Schnitzer said he'd never seen a decline like thecurrent storms impacting the markets. As part of its efforts toweather the winds ahead, he pointed out company actions, like the20%reduction in its job force reduction that Centerline announcedon November 4.

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He also said that the company is exploring options with its bankgroup into 2010 noting that the company has $29 million of totalliquidity on its balance sheet at this point. Schnitzer said thecompany's goal is to de-lever that balance sheet.

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"In the subsequent months since the overall market downturn, itsbeen very difficult to obtain outside financing for the B-pieces,"said Schnitzer, adding that a financing--or sale of theB-pieces--was intended to cover the company's term loan paymentsbut he said the company was granted an extension by its bank groupto meet an $18.8-million term loan obligation.

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"Presently, we are in advanced discussions to implement a longerterm debt financing package for Centerline," and "provide ourlenders with an adequate security package in return," saidSchnitzer.

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