American Business Financial Services announced Monday that it had received $500 million in debtor-in-possession financing from Greenwich Capital Financial Products, Inc. The facility includes a $65 million working capital line of credit and $435 million in mortgage warehouse financing. ABFS plans to "immediately finance new loans to customers, which it intends to sell into the secondary market with servicing released," the company said in a statement. Due to a lack of liquidity, the company had not been able to originate new loans.
"We are gratified by the support we have received from our lender. With the DIP financing in place, we are confident that, through the restructuring process, the Company can improve its capital structure and take advantage of the fundamental strength of its loan origination business," said Anthony Santilli, chairman and chief executive officer of the ABFS.