American Business Financial Services, Philadelphia, once a top-ranked subprime funder, has filed for Chapter 11 bankruptcy protection. The company filed in U.S. Bankruptcy Court in Delaware late Friday. ABFS, which has defaulted on several credit facilities, has secured a commitment for a $500 million debtor-in-possession financing from Greenwich Capital. In a filing with the Securities and Exchange Commission, the mortgage banker said "due to the previously disclosed liquidity issues" it has "significantly curtailed" loan originations. It is both a retail and wholesaler lender.
Philly Subprime Lender Goes Bankrupt
January 24, 2005, 3:00 p.m. EST 1 Min Read
