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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (1954)	5/2/2008 12:19:13 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 6370

ASFI vindication. Single digits! Midland - Texas 3:0

To: RockyBalboa who wrote (1954)	1/26/2009 5:39:57 PM
From: RockyBalboa	Respond to of 6370

ASFI acknowledes finally, that the collections in its superior quality charged off portfolio are bit slow; too slow for their lenders. So, they try to cure the deficiency. Or they hire a new legion of jawbreakers from romania... Form 8-K for ASTA FUNDING INC -------------------------------------------------------------------------------- 15-Jan-2009 Other Events Item 8.01. Other Events As previously reported, Palisades Acquisition XVI, LLC ("Palisades XVI"), an indirect wholly owned subsidiary of Asta Funding, Inc. (the "Company"), entered into a Receivables Financing Agreement, (as amended, the "Agreement"), with, among other parties, BMO Capital Markets Corp. ("BMO"), pursuant to which Palisades XVI borrowed approximately $227 million in order to finance a portion of the $300 million purchase price for a portfolio of approximately $6.9 billion in face value receivables. On December 1, 2008, as a result of the actual collections being lower than the minimum collection rates required under the Agreement for the month ended November 30, 2008, a termination event occurred under the Agreement. Palisades XVI and BMO continue to negotiate a fourth amendment (the "Fourth Amendment") to the Receivables Financing Agreement, which would, among other things, lower the minimum collection rate and, under certain circumstances, extend the maturity date. In connection with the proposed Fourth Amendment, the Company is negotiating limited credit support (representing less than 2 percent of its total assets) for the benefit of BMO, and an intercreditor agreement (the "Intercreditor Agreement"). This arrangement will require the consent of the consortium of banks that provide the Company's existing line of credit under the Fourth Amended and Restated Loan Agreement (the "Credit Agreement"). In connection with obtaining such consent, the Company is also discussing other amendments, including amending certain provisions of the Credit Agreement (the "Credit Agreement Amendment") to reduce the maximum availability and amend certain financial covenants of the Credit Agreement. There can be no assurance the Company will be able to negotiate any or all of the Fourth Amendment, the Intercreditor Agreement or the Credit Agreement Amendment and related documents, or that the terms of any such documents will be favorable to the Company. In order to address these issues, the parties to the Agreement have executed a series of waivers of the termination event, the latest of which is dated as of January 14, 2009, which now provides that, among other things, the termination event would be waived until January 23, 2009. The description of the Waiver set forth herein does not purport to be complete and is qualified in its entirety by reference to the full text of the Waiver, a copy of which will be filed as an exhibit to the Company's Annual Report on Form 10-K for fiscal year ended September 30, 2008. --------------------------------------------------------------------------------