Associated Press - May 2, 2009 2:55 PM ET

SANTA FE, N.M. (AP) - Thornburg Mortgage Incorporated yesterday filed a petition for Chapter Eleven bankruptcy protection in a Maryland court.

The Santa Fe-based jumbo mortgage lender had been hit hard since mid-2007 by the mortgage and credit market crisis.

The company announced its plans a month ago to file for bankruptcy protection, liquidate assets and to go out of business.

The company laid off 130 employees in April. Before the economic downturn, it had employed up to 180 people.

Thornburg says it will sell a key subsidiary called ADFITECH, which provides quality-control services.

Company officials could not be reached for comment.

Among the unsecured creditors was one New Mexico company. The Rodey Law Firm, which has offices in Albuquerque and Santa Fe, is owned $2.3 million.

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