Stern Family Establishes $8.2 Million Subordinated Loan to Asta Funding, Inc.
Thursday May 1, 5:15 pm ET
ENGLEWOOD CLIFFS, N.J., May 1 /PRNewswire-FirstCall/ -- Asta Group Inc., a large shareholder of Asta Funding, Inc. (Nasdaq: ASFI - News), beneficially owned and controlled by Arthur Stern, the Chairman of the Board of Asta Funding, Gary Stern, the Chief Executive Officer of the Company, and members of their families, have agreed, on an unsecured basis, to advance approximately $8.2 million to the Company.
Proceeds of the loan will further collateralize or pay down the Company's revolving line of credit with its consortium of banks. A shortfall in collateral otherwise would exist due to set offs taken by one of our servicers for fees and reimbursement of court costs expended by it. The Company has decided that at this time, this course of action is the best remedy to this situation, while offering the possibility of more effective collections and possibly accelerating the legal process where appropriate.
The loan would pay interest-only at the rate of 6.25% per annum and repaid in full at the maturity date of January 9, 2010.
Full details of the transaction are available in the Form 8-K filed by the Company today.
Based in Englewood Cliffs, NJ, Asta Funding, Inc., is a consumer receivable asset management company that specializes in the purchase, management and liquidation of performing and non-performing consumer receivables. For additional information, please visit our website at http://www.astafunding.com