NEW YORK — Integrated Resources Inc.'s stock price plunged nearly 50% Thursday after the insurance and mutual fund company said it was halting payment on $864 million in short-term debt.
Integrated, which has $7.8 billion in assets, said the problem affects only the parent company and not its affiliates and subsidiaries nationwide, which would continue to make payments to creditors.
On Wednesday, banks withdrew Integrated's access to short-term credit markets amid signs of weakening financial condition at the firm.
Integrated said it did not have the money to pay off its debt, including some $373 million in commercial paper and loan shares that come due in the next 45 days. The debt payments amount to about $8 million a day.
Integrated also has $491 million in short-term bank credit lines mostly payable on demand.
The company's stock plunged $5.75 to close at $6.25 a share in New York Stock Exchange trading Thursday. Volume was 1.7 million shares, about four times the trading activity on Wednesday. The stock closed at $15.375 on Tuesday.