Objection to Blackrock Continuing to Manage Anthracite Filed

Peter Shah has filed a legal motion asking the court to overturn Judge Arthur J. Gonzales' ruling dated March 17^th, 2010, which allowed Blackrock Management to continue managing Anthracite Capital during the bankruptcy proceedings. As Peter points out, there is clearly a conflict of interest here. Most notably:

• Bank of America, one of Anthracite Capital's largest debtors, owns 34% of Blackrock, Inc.
• 25% of Blackrock is owned by PNC Bank. The cash flow from seven of Anthracite's CDOs is managed by Midland Loan Services, Inc. a subsidiary of PNC Bank.
• Richard M. Shea, the President and CEO of Anthracite, is a managing director at Blackrock, and has been employed by the company for many years.

As Peter argues, there are some clear conflicts of interest here, and he has requested that the court void Judge Gonzales' ruling. This motion has been submitted to the court, and is a matter of public record. You may view it below.

Anthracite Capital--Objection to Order Dated March 17

Letter to Board of Directors

One of our fellow shareholders, Peter Shah, has sent a letter to Anthracite Capital's president and Board of Directors, asking them to release information to shareholders, and clear up some of the discrepancies pertaining to the bankruptcy.

Notably, he has asked why Anthracite chose to file Chapter 7, rather than Chapter 11 Bankruptcy. He has also asked them to clear up the discrepancy regarding the assets that were mentioned in bankruptcy filings, and the assets that were listed in September of 2009. By his calculations, there appear to be 9.3 million dollars missing, and as he has reminded them, it is their obligation to release this information to shareholders.

You can read the entire letter below. We would like to ask that everyone mail a copy of this letter to Anthracite's Board of Directors, in order to increase pressure on them to release the information that shareholders are entitled to. You can download the file as either a Microsoft Word document, or plain text. But you will need to sign up for an account with Scribd in order to download it. It's quick and only takes a few seconds.

If you don't want to sign up for an account, you can also click the Select tool at the bottom of the document, and copy and paste the letter into your favorite Word Processor. Whichever method you choose, just remember to change the highlighted text at the top and bottom so that it's your name that appears on the letter, instead of Peter's. And please also remember to change the date. And also, clear the highlight when you're done, so that it doesn't appear when you print it out.

Shareholders need to pull together, and we're really hoping that you'll jump on board to get these guys to release more information about the company's assets.

Letter to Richard Shea

List of Subsidiaries

We have obtained the following list of subsidiaries of Anthracite Capital, Inc. There are 30 total.

List of Subsidiaries

Anthracite CDO Depositor, LLC (1)
Anthracite CDO I Ltd. (3)
Anthracite CDO I Corp. (2)
Anthracite CDO II Depositor, LLC (1)
Anthracite CDO II Ltd. (3)
Anthracite CDO II Corp. (2)
Anthracite CDO III Depositor, LLC (1)
Anthracite CDO III Ltd. (3)
Anthracite CDO III Corp. (2)
Anthracite CRE CDO 2006-HY3 Depositor, LLC (1)
Anthracite CRE CDO 2006-HY3 Ltd. (3)
Anthracite Euro CRE CDO 2006-1 P.L.C. (4)
Anthracite Funding, LLC (1)
Anthracite 2004-HY1 Depositor, LLC (1)
Anthracite 2004-HY1 Ltd. (3)
Anthracite 2004-HY1 Corp. (2)
Anthracite 2005-HY2 Depositor, LLC (1)
Anthracite 2005-HY2 Ltd. (3)
Anthracite 2005-HY2 Corp. (2)
AHR Capital BofA Limited (4)
AHR Capital DB Limited (4)
AHR Capital Limited (4)
AHR Capital MS Limited (4)
Anthracite Capital Trust I (7)
Anthracite Capital Trust II (7)
Anthracite Capital Trust III (7)
LB-UBS Commercial Mortgage Trust 2004-C2 (8)
Anthracite Capital BOFA Funding, LLC (1)
Courtyards at Mustang GP, LLC (5)
Courtyards at Mustang, LP(6)

30 Subsidiaries

Docket Information

The following is the docket information pertaining to the bankruptcy filing:

Docket Information

Anthracite Capital Shareholders Blog Established

Welcome. We've recently set up this weblog to provide information regarding the Anthracite Capital bankruptcy to shareholders. For years, Anthracite Capital was a respected, publicly traded REIT started and managed by BlackRock, Inc. In recent years, however, its share price had started to decline amid the troubled real estate market.

The major change came in November of 2009, when it was announced that Kathleen Hagerty was joining Anthracite's Board of Directors. This was seen as a good sign by investors, and an indicator that the company's future might be bright. However, two weeks later Ms. Hagerty inexplicably resigned, and shortly thereafter, management announced that Anthracite had missed several payments to its debtors. The share price plummeted, and several months went by with little or no news from management. Then in March of 2010, Anthracite's management, headed by BlackRock, Inc. announced that Anthracite would be filing for Chapter 7 Bankruptcy, and that shareholders were likely to be wiped out. Anthracite's share price promptly plummeted to as low as two cents a share.

As of the time of this writing, little news has been released about the bankruptcy proceedings, and shareholders are still not being represented legally. We have established this page to inform shareholders of any news releases or court filings pertaining to the bankruptcy. We also hope that by drawing attention to this issue, shareholders will be able to unite and be legally represented in the bankruptcy proceedings.

If you own or owned shares of this stock and you lost money when the bankruptcy was announced, we highly encourage you to follow us and to join our numbers. We also welcome you to sign up for the shareholder's mailing list, which you can do by visiting its website at http://finance.groups.yahoo.com/group/acpiq/
Shareholders must be united and find legal representation in these proceedings.