what's the deal with these doodoo heads?

Oct 28th 8K SEC release just out. LUM not found at fault in recent post petition loan

Item 8.01 Other Events.

On September 5, 2008, we, together with certain of our subsidiaries, filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Maryland (Case No. 08-21389).

The Bankruptcy Court approved our use of a Post Petition Loan and Security Agreement with Arco Capital Corporation, Ltd. and we borrowed $200,000 under the Agreement on September 29, 2008. On October 6, 2008, the lender asserted that an event of default had occurred on the Agreement and as a result, the lender purported to accelerate our obligations under the Agreement, declared the Agreement to be terminated and reduced its commitment to lend under the agreement to zero. We contested that an event of default occurred by the filing of Emergency Motion Papers with the Bankruptcy Court. On October 9, 2008, the Bankruptcy Court issued a Temporary Restraining Order prohibiting us from transferring or otherwise disposing of any or all of the funds borrowed under the Agreement until the earlier of ten days from the date of the Order or the conclusion of a hearing on our emergency papers. After a hearing, the Bankruptcy Court, on October 16, 2008, found that the event of default alleged by the lender had not occurred and that we were not in default under the terms of the Agreement.


We and our subsidiaries are required to file Monthly Operating Reports with the Bankruptcy Court. A copy of the September 2008 Monthly Operating Report is filed as Exhibit 99.1 to this Current Report on Form 8-K. Our last publicly available financial statement was included in our March 31, 2008 Form 10-Q that was filed with the Securities and Exchange Commission on May 19, 2008. Since that report we sold securities and transferred securities to repurchase agreement lenders to repay short-term debt and we entered into several term-note agreements for balances due on repurchase agreement debt. Subsequent to entering into those term-note agreements, as previously announced, on July 11, 2008, our remaining repurchase agreement lender declared an event of default to have occurred on our repurchase agreements with them due to our inability to deliver additional securities or cash necessary to fulfill our obligations under the terms of the agreement. As a result of the event of default, the repurchase agreement lender took possession of all remaining mortgage-backed securities of value, including securities that were retained from our whole loan securitizations. These transfers of securities resulted in the derecognition of all of our remaining mortgage-backed securities from our balance sheet and the deconsolidation of all of our securitization trusts because we no longer have the rights to receive principal and interest cash payments from these securities.

Cautionary Statement Regarding Financial and Operation Data

The Balance Sheets and Income Statements included in this Monthly Operating Report are prepared on a stand alone basis for each subsidiary that has filed for relief under Chapter 11 of the U.S. Bankruptcy Code and include certain items such as liability amounts for the guarantees of the debt of other subsidiaries. In addition, this Monthly Operating Report does not include the balances of certain subsidiaries that have not filed for relief under the U.S. Bankruptcy Code. Therefore, the sum of these entities are not representative of the consolidated financial statements of Luminent Mortgage Capital, Inc. in accordance with generally accepted accounting principles.

We caution investors and potential investors not to place undue reliance upon the information contained in the Monthly Operating Report, which was not prepared for the purpose of providing the basis for an investment decision relating to any of our securities. The Monthly Operating Report is limited in scope, covers a limited time period, and has been prepared solely for the purpose of complying with the monthly reporting requirements of the Bankruptcy Court. The Monthly Operating Report was not audited or reviewed by independent accountants, has not been presented in accordance with generally accepted accounting principles, is in a format prescribed by applicable bankruptcy laws, and is subject to future adjustment and reconciliation. There can be no assurance that the Monthly Operating Report is complete. The Monthly Operating Report also contains information for periods which may be shorter or otherwise different from those contained in reports required pursuant to the Securities Exchange Act of 1934, as amended. Results set forth in the Monthly Operating Report should not be viewed as indicative of future results.







Item 9.01 Financial Statements and Exhibits.

Exhibit No. Description
99.1 Monthly Operating Report for the Period Ended
September 30, 2008.









Top of the Form

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Luminent Mortgage Capital, Inc.

October 28, 2008 By: Karen Chang





Name: Karen Chang
Title: SVP, Chief Financial Officer

YES, this is all too weird and this last 8K I was sent one evening after its late release through me for a loop and still has me scratching my head???

WTF is really going on now I have to wonder???

Where was the 8K when they did the deal to begin with? Where is the 8K regarding the Countrywide traunch being bought back by BAC? All of the sudden, LUM is acting like a public company again and a going concern.

Weird is right regarding LUM... New 8K today filed with SEC


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934



Date of Report (Date of Earliest Event Reported): October 6, 2008



Luminent Mortgage Capital, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)



Maryland 001-31828 06-1694835
_____________________ _____________ ______________
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1515 Market Street, Suite 2000, Philadelphia, 19102
Pennsylvania
_________________________________ ___________
(Address of principal executive offices) (Zip Code)





Registrant's telephone number, including area code: 215-564-5900



Not Applicable
______________________________________________
Former name or former address, if changed since last report



Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

{ } Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
{ } Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
{ } Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
{ } Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))

--------------------------------------------------------------------------------
Top of the Form

Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial
Obligation or an Obligation Under an Off-Balance Sheet Arrangement.

On September 5, 2008, we, together with certain of our subsidiaries, filed a
voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in
the U.S. Bankruptcy Court for the District of Maryland (Case No. 08-21389). In
addition, on September 5, 2008, we entered into a Post-Petition Loan and
Security Agreement, or the Agreement, with Arco Capital Corporation, Ltd. On
September 15, 2008 the Court issued an Interim Order authorizing us to borrow
up to $400,000 under the Agreement. On October 6, 2008, the Court issued a
Final Order authorizing us to borrow under the Agreement.

On September 29, 2008, we borrowed $200,000 under this Agreement in accordance
with its terms. On October 6, 2008, the lender asserted that an event of
default had occurred under the Agreement because we alledgedly requested and
obtained a funds transfer in violation of the Agreement. As a result, the
lender purported to accelerate our obligations under the Agreement, declared
the Agreement to be terminated and reduced its commitment to lend under the
Agreement to zero. We do not agree that an event of default has occurred and
have contested that an event of default occurred by the filing of emergency
motion papers with the Bankruptcy Court. On October 9, 2008, the Bankruptcy
Court issued a Temporary Restraining Order prohibiting us from transferring or
otherwise disposing of any or all of the funds until the earlier of ten days
from the date of the Order or the conclusion of a hearing on the
company’s emergency papers, which now is scheduled for October 16, 2008.

--------------------------------------------------------------------------------
Top of the Form


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.



Luminent Mortgage Capital, Inc.
October 10, 2008 By: /s/ KAREN CHANG

------------------------------
Name: KAREN CHANG
Title: Chief Financial Officer

This could explain the disappearance of the Countrywide traunch, It appears that they probably took it back at part as part of this settlement with the state of California. Doing the math, this means that LUM may have recouped over $50 million in write downs on this traunch alone - all of which drops to the bottom line. It would also have given them a lot of cash. This BK is falling apart quickly. Everyone should notice that no press releases and no SEC documents have been filed related to the $335 million pay down, as well as LUM probably being reimbursed for losses they took on the traunch. I guarantee the note holders are in their face right now as their book value continues to rise to a positive number.

SPRINGFIELD, Ill. - Facing a lawsuit over deceptive mortgage practices, Bank of America Corp. has agreed to modify tens of thousands of loans to keep people in 11 states from losing their homes, the Illinois attorney general's office said Sunday.

Borrowers stuck with mortgages they can't afford could see their interest rates reduced or have the loan principal cut. Some might qualify for having to pay nothing but interest for a decade. Even people who can't afford to keep their homes with such changes will be able to get help moving to a new home.

"This is going to provide a tremendous amount of relief," said Illinois Attorney General Lisa Madigan.

Her office and officials from California negotiated the settlement. Nine other states have also joined the settlement, and other states could sign on, said Deborah Hagan, chief of Madigan's Consumer Protection Division.

If all 50 states were to join, the settlement could provide $8.7 billion in relief to 400,000 borrowers, Hagan said.

In California alone, the settlement will offer $3.5 billion in relief. For Illinois, that would translate to $190 million. The total for the 11 states was not immediately available.

The settlement applies to people who obtained their mortgages through Countrywide Financial Corp., which Charlotte, N.C.-based Bank of America purchased in June, at the same time Illinois and California sued the company.

"Countrywide's lending practices turned the American dream into a nightmare for tens of thousands of families by putting them into loans they couldn't understand and ultimately couldn't afford," California Attorney General Jerry Brown Jr. said in a statement Sunday.

There are a lot of weird things going on. I went on Absnet and saw some interesting things, including:

- This press release was posted - "Luminent To Launch Distressed Debt Fund" - October 2, 2008
- The entire $335 million Countrywide traunch was zeroed out, ie. paid off
- Their average net loss rate was running under .5%

We all know that their BK petition was based on mark to market valuations that are no longer valid. They now have to remark their entire portfolio using pre-FASB 157 benchmarks. This will substantially revalue their portfolio upward. And, as they are also launching new funds, they are hardly acting like a BK company.

Weird... volume still present on LUM stock and it closed today at its high for the day with about 400,000 volume...?? 1 1/2 cents !!!

IMPORTANT 9/29 SHAREHOLDER GROUP UPDATE

I HAVE EMAILED ALL SHAREHOLDERS IN THE GROUP A LETTER THAT I ASK YOU TO READ AND RESPOND TO ASAP. IF YOU DID NOT RECEIVE IT, PLEASE LET ME KNOW AND I WILL EMAIL IT TO YOU DIRECTLY.

If you are not in the group and wish to participate, please email me your name, address, phone # where you can be reached and # of shares you currently hold. I will email you back.

My email is octobersun@peoplepc.com

Thank you.
TakeCare

Some who lost big in Luminent, listen to a man who is no longer with us. Money is earned, Grace is a gift!

lee,

Sorry to hear about your neighbor and in addition your loss with Luminent. They all look good in the beginning and no one knows which ones will turn out good or bad in the short and long run.

My prayers are with your friend.

Brent

WEDNESDAY 9/24 GROUP SHAREHOLDER UPDATE

To date we have close to 3.5 million shares represented by our group. This is great! But we must keep going and time is of the essence so if you are interested in joining the group I need to hear from you ASAP with your NAME, ADDRESS, PHONE # WHERE YOU CAN BE REACHED AND # OF SHARES YOU CURRENTLY HOLD. I also need to know the approximate amount of your losses.
I will email you back.

My email address is octobersun@peoplepc.com (please be aware that I posted this incorrectly, by accident, on another post, so if you've tried to reach me unsuccessfully before, please try again).

Take care and I look forward to hearing from you.

It's a good start. However, wouldn't it be a super idea, if
the group got together and paid $200K for the remaining 42 Million shares outstanding at $.005/share?? We could own 100% of the common shares (except for what ARCO controls), and
throw the bums out of BK Court. I am looking forward to having the Courts really look into the scam that is going on at LUM right now. The $45M uppaid REIT dividend has got to go the shareholders, not to an offshore Hedge Fund who pays 0 taxes, and who cares nothing for the US Economy. The biggest question we must look into, is the $481 Million writedown in Dec 2007. How was this calculated, and when is it going to be re-evaluated? ARCO knows that this temporary negative equity is going to turn into a big positive gain in the next few months, and they want to steal all the assets from the shareholders now. Let's go after these crooks, and especially the lies told to us by Karen and Co.

You are doing a fantastic job - way to go!!!

TUESDAY 9/23 SHAREHOLDER GROUP UPDATE
AS OF TODAY THERE ARE OVER 3.2 MILLION SHARES REPRESENTED BY THE GROUP. THAT IS APPROXIMATEY 7.5% OF TOTAL SHARES WHICH SHOWS REMARKABLE SHAREHOLDER COHESION, ESPECIALLY GIVEN THE SHORT AMOUNT OF TIME THAT HAS PASSED SINCE WE BEGAN THIS EFFORT. LET'S KEEP GOING!

Please contact me if you would like to be inclued in the group with your name, address, phone number where you can be reached and number of shares you currently hold. I will email you back.
My emaill is ocotbersun@peoplepc.com
Take Care

9/22 SHAREHOLDER UPDATE
To date our group is represented by more than 2.4 million shares. Please continue to email me if you wish to be included in the group with your name, address, phone number where you can be reached and # of shares you hold. Please feel free to give me any input you feel would be helpful in making our case to the BK that we are entitled to be represented in the hearing.
My email is octobersun@peoplepc.com
Take Care

Thank you Steve. I see the connection now.
Pam

Pam,

I e-mailed you my info & data.

Also I mailed you a series of posts found by "Karen Chang" and hope you received it and am waiting to see if there are any additional I can find out there still on any other financial/investment threads where she was :supportive" and caring to shareholders posting discussion topics to us all who bought their shares.

Steve

celebration, this message is for you; can you send me your link so i can replay to you with my personal info, sorry but i can get to tou tru people pcs, I like to participate w the shareholders Ad Hoc ComitteMy email is edegoc@aol.com

Thank you so much for your encouragement. I actually spoke at length today on the phone with the leader who was successful at organizing the Fremont ad hoc committee and consequenlty they are now being formally represented in the Fremont BK hearing. Yes, I may at some point in the near future give a cutoff date for those who wish to be part of the group.
RE: frtgrdn--I'm not sure if he has emailed me under another name but he is someone I was certainly hoping to hear from and the fact he lives in Philadelphia would obviously be a tremendous help to us.
Thank you for the information.
Take Care

Your doing a great job,maybe you need to tell everybody there is a cut-off date for sending their information too you,Have you got with (frtgrdn21) from yahoo board,i think he live's in Phily maybe he could offer some info.,you already have my # of share's,through another user id.

SHAREHOLDER GROUP UPDATE
I am pleased to report that in less than 2 days we have almost 1.5 million shares represented in the group. We must organize as quickly as possible so if you are interested in joining the group please email me at octobersun@peoplepc.com with your name, address, phone number where you can be reached and number of shares you are holding.
Thank you.

Hi edgegoc,
Thank you for the inquiry. I'm a bit confused with your question. Were you trying to reach Yahoo finance board where my posts are (by "Sweethomenow") or are you trying to email me?

My personal email address if you're interested in contacting me to be included in the group is octobersun@peoplepc.com

To reach the Yahoo board where the Lum posts are located go to
http://messages.yahoo.com/ and type in "lum" in the search bar.

I'll check back later to see if you're still having difficulty. Please just reply to this post if you are.

Good Luck and hope to communicate with you soon.

FORMATION OF LUM SHAREHOLDER GROUP TO SEEK LEGAL REMEDY - from the yahoo finace group

Link:
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_L/threadview?m=tm&bn=79550&tid=5270&mid=5270&tof=5&frt=2

Good Luck, this is what you are faced with before common shareholders would be in line.

Arco; secured creditor,

Other financial institutions (loans) etc.

Senior note holders

Junior note holders

All other secured and non-secured financing.

They have no equity, in fact they have a huge negative equity position. If there assets were even close to liabilities shareholders may have some chance of recourse in the new formation. I have given my honest assessment all along the way and this post is no different. I see no hope for common shareholders.

Even if they should get representation in bankruptcy court I give them no chance of receiving any value or piece of the post bankruptcy corporation. I don't blame anyone for trying and hoping for a positive outcome though.

I-Man,
If you have not already emailed me and wish to be part of the shareholder group you must email me directly with: the number shares you hold, your name, address and phone number where you can be reached.
My email address is octobersun@peoplepc.com

Thank you,
Pam

So sorry Edegoc! I spelled your board name incorrectly. I guess it's getting late for me!

Hi edgegoc,
Thank you for the inquiry. I'm a bit confused with your question. Were you trying to reach Yahoo finance board where my posts are (by "Sweethomenow") or are you trying to email me?

My personal email address if you're interested in contacting me to be included in the group is octobersun@peoplepc.com

To reach the Yahoo board where the Lum posts are located go to
http://messages.yahoo.com/ and type in "lum" in the search bar.

I'll check back later to see if you're still having difficulty. Please just reply to this post if you are.

Good Luck and hope to communicate with you soon.

in replay, to Celebration , is there any other way to contact
your site? I tried the name you provide but it take me to a place that i got lost, there must be a better way to comunicate, about your personal Email? I have over 500000 shares, so far completly wiped out, advice.

RE: POST #940, please excuse me. I didn't clarify that my "name" on the Yahoo board is "Sweethomenow" I've never posted on this board before and didn't realize that I signed up as "Celebration" at one time when I was considering posting a message on this board. Sorry about the confusion.

Please read my original post RE FORMATION OF SHAREHOLDER GROUP on the Yahoo board if you have the time. You will see a portion of a very recent filing made on the part of Lum in which they have recently requested an extension in order to submit additional filings specifically for the purpose of ("waiving") preventing consideration of the common shareholders in the bankruptcy hearing. We are entitled to be represented in the BK hearing in the form of an ad hoc committee if enough shares are represented. The operative word in the Lum filing you have posted is "plan." It is Lum's "plan." Just because Lum plans this or that or makes whatever declarations they wish to make in the form of legal filings does not mean there is no recourse for us.The bankruptcy hearing has not even taken place, much less its' final outcome determined. Remember, shareholders can also have a plan. What Lum's true financial status is will be ultimately determined in Court. It is the belief on the part of many shareholders, based on many factors, that if the company does go on to organize into a LLC, existing shareholders are entitled to be included in the new venture. Timing is very important though. We must act quickly before more "stealthful" filings are made by Lum that could, in fact, prevent us from taking any and all legal recouse. In one day I have emails representing over 1 million shares. I will continue to post updates on my progress on the Yahoo board. I continue to invite all those who wish to join the group to email me at octobersun@peoplepc.com with your contact information and number of shares you hold. And please remember for now that SEC filings, court filings and press releases don't necessarily always reveal the whole picture. Certainly we have at least learned that by now. If nothing else it's my belief that we are certainly entitled to be represented in the bankruptcy hearing. Take care

arco will sell it share once bk over. that my opinion or they may kept te stock and take of luminent completly.

arco will sell it share once bk over. that my opinion or they may kept te stock and take of luminent completly.

And the $45M REIT dividend,which was due all the shareholders from last year, plus any additional amounts for 2008, goes where? In paid Fed Taxes, instead of to shareholders? When you convert a long-standing REIT with undistributed dividends into BK, while simultaneously driving the stock value down, do you then allow this new LLC to steal all the value? If the company was really worth nothing, then why the new LLC??
A BK should be a BK for everyone. Shareholders deserve a piece of any new company emerging from the ashes of LUM.

Unfortunately there is nothing left to fight over. The only way for shareholders to profit was if they could somehow keep from going bk, because of their negative equity. I tried to sell the second day at .017 but it only got to .015 that day. So the next day I put them in @ .01 and sold them at .011.

There wasn't any need for Arco to keep the shareholders involved. Everything that happened in the market since last year was against the come back for Luminent. I'm sorry to say, except for some huge miracle, it's over!


Under the Agreement, each of the parties thereto has agreed to vote in favor of a Chapter 11 plan of reorganization for the Companies containing terms specified in the Agreement (the "Plan"). Under the Agreement, the Plan is required to provide for the cancellation of all outstanding common and preferred shares in the Companies, the cancellation of all subordinated debt instruments, and for the distribution to allowed unsubordinated general unsecured creditors (including the Companies' convertible noteholders, but excluding Arco and its affiliates) of 41% of the common stock of the reorganized Companies and $2.75 million




The Company does not expect any value to be available to the existing common stock holders or subordinated creditors and it does not expect them to share in the ownership of the newly reorganized company.

Lee- I cannot believe you sold for $.01? You sold your
entire position for one cent/share? Tell me this is not true!
We have all gone through hell and back for this stock, and you are a key player who knows the history and details of what has transpired. We have all lost $ in this stock, and ARCO & LUM see value in the LLC, and are trying to screw the shareholders.
We have a 5 year projected cash flow earnings estimate, which is large enough to pay all expenses, interest to ARCO, and have equity left for the new shareholders. We must fight this thing, and make sure that the old shareholders participate in the new LLC. Karen Chang and company have consistently promised us that we would be a part of the new LLC, and would receive dividends/stock for past REIT earnings. We can't give up now.

SEC "finally" taking action against NAKED short sellers affecting many public stocks!!!
>>>>



SEC puts 'naked' short sellers on notice

Regulator enacts new ruling banning 'naked' short selling on all public companies.

By David Ellis, CNNMoney.com staff writer
September 17, 2008: 11:08 AM EDT

NEW YORK (CNNMoney.com) -- The Securities and Exchange Commission adopted a set of new rules Wednesday which would ultimately ban the practice of so-called "naked" short selling, possibly providing some much-needed comfort for financial markets.

But instead of just shielding the embattled financial services industry this time around, the nation's securities regulator said the prohibition would cover all publicly traded companies.

"These several actions today make it crystal clear that the SEC has zero tolerance for abusive naked short selling," SEC Chairman Christopher Cox said in a statement.

Traditional short sellers borrow stock with the aim of selling it, then buying it back at a lower price, hoping to pocket the difference. In a "naked" short sale, however, investors short the stock without actually borrowing it, making it much easier to drive down the share price of a company.

Dramatic swings
Some market observers have blamed the recent wild swings in financial markets and steep decline in financial stocks on the practice of "naked" short selling. Hoping to stem the sharp selloff that the industry endured back in early July, the SEC enacted a temporary ban on the practice for 17 domestic and international securities firms, along with the twin mortgage giants Freddie Mac (FRE, Fortune 500) and Fannie Mae (FNM, Fortune 500).

The move helped, but financial stocks have come under pressure once again following the dramatic events over the last three days, including the collapse of Lehman Brothers (LEH, Fortune 500), the purchase of Merrill Lynch (MER, Fortune 500) by Bank of America (BAC, Fortune 500) and a government rescue of insurer AIG (AIG, Fortune 500).

Prior to Wednesday's announcement, industry groups like the American Bankers Association feared that the yet-to-be-announced rules may not go far enough to protect the stock price of banks.

Other groups, like the Managed Funds Association and the Coalition of Private Investment Companies, which represent hedge funds and other asset managers, have opposed any permanent changes, fearing that a rule would not only limit legitimate short selling but also give an inaccurate representation of the real price of a stock.

Count me in too of course as this is very wrong what LUM Board is and has done to many of us who trusted information that surely seems fraudulent no matter how you slice it...

Last night on Larry King Live, Ben Stein (even Donald Trump & Robert Reich) said it the best and what I had said for a few years, is there is enough regulation and laws (don't need more regulations) but they (laws & regulations) have not been enforced properly for the protection of the average investor and GREED has taken over Wall Street and fraud had been allowed to run rampant to hurt many investors from housing to the stock market and the overseeres and regulators turned a blind eye.

count me in, i have many shares, total debacle

I sold for a penny and I can't see any recourse for shareholders.

FORMATION OF LUM SHAREHOLDER GROUP TO SEEK LEGAL REMEDY - from the yahoo finace group

Link:
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_L/threadview?m=tm&bn=79550&tid=5270&mid=5270&tof=5&frt=2

Lee - thanks for the response - I got worried about you. Sorry about your friend. Are you selling or just holding out to see what happens? Do you feel we as shareholders have any recourse?

Remember this press release a few months ago? There are people from the Fremont Capital ordeal now getting investors of LUM stock through several financial websites & boards to form an equity group to petition federal judge to represnt them and go after LUM's corp board and assets to get justice as something is very wrong with PR releases, SEC filings and other info investors relied upon and were lead to believe "other things" and then we see last weeks' events from Ms. Chang & gang occur saying we stockholders are S.O.L...??>>

Luminent Mortgage Capital, Inc. Announces Proposed Restructuring and Files
2007 Form 10-K

PHILADELPHIA, March 31 /PRNewswire-FirstCall/ -- An affiliated company of
Luminent Mortgage Capital, Inc. (NYSE: LUM) filed a Form S-4 registration
statement with the Securities and Exchange Commission on Friday, March 28,
2008 with respect to the Company's proposed conversion to a publicly traded
partnership and other matters. In addition, the Company filed its Form 10-K
for the year ended December 31, 2007 on Friday, March 28, 2008.
The Company believes that maintaining its qualification as a real estate
investment trust, or REIT, is no longer beneficial to it or its stockholders.
Accordingly, the Company's board of directors has approved a restructuring
whereby the Company will convert from a Maryland corporation qualified as a
REIT to a Delaware limited liability company that would be considered a
publicly traded partnership taxable as a partnership, or PTP.
The Company believes that the restructuring is in the best interests of
its stockholders, and that since the PTP will not be required to comply with
the REIT income and asset tests and distribution requirements, it will
significantly enhance its flexibility for investment diversification and cash
management. In addition, following the restructuring, the PTP plans to
diversify and offer fee-based services, including credit risk management,
asset management advisory services and sub-manager services for investment
funds. These fee-based activities generally will be conducted through
corporate subsidiaries that would be subject to corporate income tax.
The restructuring is subject to stockholder approval and, if approved, it
is expected that the restructuring will be completed in the second quarter of
2008.

FYI Chapter 11 court docket interesting::

LUMINENT MORTGAGE CAPITAL, INC. filed for chapter 11 bankruptcy on September-05-2008 listing an estate with assets of $1,000,001-$100,000,000 and liabilities of $100,000,001+.

Here is a look at a few items in the docket:

Sep-05-2008, Motion to Extend Time (I) Granting an Extension of Time to File Schedules and Statements, (II) Waiving the Requirement to File a List of Equity Security Holders, and (III) Waiving the Requirement to Provide Notice of the Order for Relief to Equity Security Holders Filed by Luminent Mortgage Capital, Inc.. (Attachments: # 1 Proposed Order) (Sher, Joel) (Entered: 09/05/2008)

Sep-05-2008, Declaration re: of Zachary H. Pashel in Support of Chapter 11 Petitions and First Day Motions Filed by Joel I. Sher. (Attachments: # 1 Exhibit 1 - Part 1# 2 Exhibit 1 - Part 2# 3 Exhibit 1 - Part 3) (Sher, Joel) (Entered: 09/05/2008)
Sep-05-2008, Motion for Joint Administration Filed by Luminent Mortgage Capital, Inc.. (Attachments: # 1 Proposed Order) (Sher, Joel) (Entered: 09/05/2008)

Sep-05-2008, AMENDED Meeting of Creditors. 341(a) meeting to be held on 10/15/2008 at 10:00 AM at 341 meeting room #2650 at 101 W. Lombard St., Baltimore. Proofs of Claims due by 1/13/2009. (Adams, C) (Entered: 09/05/2008)

Sep-05-2008, Meeting of Creditors. 341(a) meeting to be held on 10/15/2008 at 10:00 AM at Courtroom 1-B, Baltimore - Judge Keir. Proofs of Claims due by 1/13/2009. (Adams, C) Modified on 9/5/2008 (Adams, C). CORRECTIVE ENTRY: INCORRECT MEETING LOCATION - BNC NOTICE TERMINATED. SEE AMENDED NOTICE AT P. 3. (Entered: 09/05/2008)

Sorry to hear and good luck with ehaling.

I can't help to wonder if the Board Moderator(s) can go back to the dates and times Ms. Karen Chang came in here posting all the positive spin for the future of LUM to us long term shareholders and the new corp changes they were going to do in 2008 to "enhance" our shares of ownership of their stock, etc etc once their new LLP cam to be...??

Did they or her forget about this?

I've been helping a neighbor who is at death's door. Didn't even know they filed bk until the morning after. Even though they didn't look like they were going to make it, I held. That eight cents looks nice now..............lol

Good luck to those who held luminent and even to those who didn't. It's time to plow some new fields. My recovery will be slow and take some time. Hopefully this lesson will be valuable for future reference.

Good luck in the future everyone.

Volume last several days is what is bewildering actually, and I am sending letter off to Karen Chang & Gang because of her BS spins in this site in past months, open statements they made even through SEC filings to the public, then to read this last 8th of September filing to SEC and C-11 basically saying any stockholder will be out of luck getting any reissuance of new stock or shares of ownership of the newly reformed corp?? What is this shit??

I know I am not the only smart fellow in here or out there so let's have some more feedback because in all my years to see, smell and hear what I did the other day, these people need to be marched upon, their homes burnt, and their assets sold off to repay stockholders who followed them and listened to their great changes to ensure shareholder value for many months...

There is no real justice left when this nation has become a safe haven for tolerance to major corporate fraud & greed daily and even by those who supposedly are "trusted" licensed securities specialists and agents and the US consumer & families get hurt time & again- It then changes to a war of sorts and people need to stand up and quit taking such manipulation of the media and newspapers so a few greedy corp execs can make $Billions and walk away unscathed while families (investors)lose out and take losses to make the wealthy richer..!

i made money on some other stocks this weeks, sold out postions and i lost some more on this stock. i still have my stock from when i first bought it. although i jump in and out of it serval time always loseing money. i can not win all the time and i can get on to some new stocks and hope to make money on out stocks.

I understand - but after all these months I felt we became friends and I just wanted to make sure he was OK after the news

i think he left because the company fial nd we lost our pennies. only time buy the company now if we need some tax write off.