Fairbanks Cites Financing Extension Pact

Fairbanks Capital Corp., Salt Lake City, has announced an agreement in principle under which its committed financing for servicing advances and working capital would be extended through Sept. 30, 2004.The agreement in principle was executed May 24 between Fairbanks and a majority of its lenders and shareholders, the company said. Beyond the financing extension, Fairbanks said its primary shareholders have agreed to provide an additional $35 million of financing. "This agreement will provide financial stability for Fairbanks as it moves forward with its multipoint plan and work already initiated to address the concerns recently raised by the rating agencies and other parties," said Jim Ozanne, chief executive officer of Fairbanks. "The company will continue to cooperate fully with the Federal Trade Commission, the Department of Housing and Urban Development, and state regulators on their reviews of the company, and is taking a positive, proactive approach to making borrower-sensitive loan servicing improvements."