American Business Financial Services, a troubled Philadelphia-based subprime lender, has announced final Bankruptcy Court approval of a $500 million debtor-in-possession financing facility that will enable ABFS to resume its loan origination business.The facility includes $175 million in interim financing provided by Greenwich Capital Financial Products and CIT Business Credit. ABFS also announced the appointment of David Coles of Alvarez & Marsal LLC, a turnaround and restructuring firm, as chief restructuring officer. In a January filing with the Securities and Exchange Commission, the mortgage banker said it had "significantly curtailed" loan originations as a result of liquidity problems. ABFS is both a retail and wholesaler lender.
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