Home Capital delays release of quarterly earnings

Beleaguered Home Capital Group Inc., which is grappling with large withdrawals from its deposits, says it is delaying the release of its first-quarter earnings until May 11.

OSC hearing on allegations against company slated for Thursday

Home Capital Group has tapped into a $2-billion credit line as it grapples with large withdrawals from client deposits. (Chris Helgren/Reuters)

Beleaguered Home Capital Group Inc. says it is delaying the release of its first-quarter earnings.

The alternative mortgage lender was due to report its results for the quarter on Wednesday after the close of markets, and host an analyst conference call the following morning. Home Capital said results for the period that ended on March 31 will be issued after the end of trading on May 11.

"This timing change allows the [management's discussion and analysis section of the results] to be updated for events that have occurred since the close of the first quarter," the company said.

In April, the company and some current and former executives were named in an action launched by the Ontario Securities Commission 

The provincial securities watchdog has alleged that the company and some executives misled investors. Home Capital has said the accusations are without merit and has promised to defend itself. The news spurred many savers to withdraw their deposits, which Home Capital uses to fund its mortgage lending.

The Healthcare of Ontario Pension Plan stepped in to provide a $2-billion credit line last week to Home Capital, but the terms of that loan have raised fears that the company is in urgent need of cash.

Home Capital said Monday it had drawn $1 billion of that credit.

The Ontario Securities Commission has scheduled a hearing into the allegations against Home Capital for Thursday.