Option One Sale in Jeopardy - H&R Block May Shutter Unit

Bloomberg is reporting today that the sale of Option One, H&R Block's subprime mortgage unit, may be in jeopardy as the company is in default of many of the originally agreed-to deal points with buyer Cerberus Capital Management. From Bloomberg: H&R Block Inc., the biggest U.S. tax- preparation company, said it may shut a subprime-mortgage unit if sale negotiations with a hedge-fund manager collapse. Cerberus Capital Management LP, which agreed in April to purchase the entire Option One Mortgage Corp. subsidiary, may buy just the loan-servicing business as demand for mortgages continues to deteriorate, Kansas City, Missouri-based H&R Block said today in a statement. Failure to renegotiate terms of the sale would force H&R block to close Option One, it said.