Franklin Credit Reports Debt Restructuring

Franklin Credit Management Corp., a specialist in servicing and resolving residential mortgage loans, has entered into restructuring agreements with its lead lending bank, according to the Jersey City, N.J.-based company.Franklin Credit's indebtedness to The Huntington National Bank was reduced by approximately $300 million, and Franklin paid the bank a $12 million restructuring fee. In addition, approximately $1.5 billion in debt to the bank (including about $491 million owed by Tribeca Lending Corp., an origination subsidiary of Franklin Credit) was restructured into six term loans with modified terms and a maturity date of May 15, 2009, Franklin reported. The forbearance agreements also contain certain restrictions on Franklin Credit's activities. The company also reported that it has been notified by the NASDAQ Stock Market that its common stock has failed to maintain the $5 million minimum market value required for listing. Failure to restore compliance by April 1 will result in a delisting notification. Franklin Credit can be found online at http://www.franklincredit.com.