PHH Scraps Sale to GE, Blackstone After Lenders Balk
By Simon Kennedy and Zachary R. Mider

Jan. 1 (Bloomberg) — PHH Corp., the New Jersey-based mortgage and auto-leasing company, scrapped a $1.8 billion sale to General Electric Co. and Blackstone Group LP after the buyout firm said banks reneged on an agreement to lend the money.

Blackstone’s banks refused to finance the planned purchase of PHH’s mortgage division, the New York-based private-equity company said in an e-mailed statement today. The lenders are JPMorgan Chase & Co. and Lehman Brothers Holdings Inc., according to a regulatory filing.