Philly Subprime Lender to Liquidate

American Business Financial Services, Philadelphia, formerly a leading subprime mortgage lender, has announced that it plans to wind down its operations and dispose of its assets through a Chapter 11 liquidation plan.The retail and wholesale lender said it closed its office in Texas April 1 and was slated to close its offices in California and Maryland on April 4. Layoffs of Philadelphia-based employees are scheduled to begin on April 11, and ABFS said it expects the corporate headquarters to be closed by the end of July. David Coles of Alvarez & Marsal, the chief restructuring officer of ABFS, said an analysis of the company's prospects had convinced the restructuring team and ABFS senior management that "the cash requirements to create a sustainable operation were significantly greater than the company's available funding."