Albert S. Dandridge III Comments on ABFS About-Face on Unsecured NotesOn January 5, 2005 by Schnader in News
Schnader partner Albert S. Dandridge III was quoted in the article, “ABFS Pulled About-Face on Unsecured Notes,” published in The Philadelphia Inquirer.
The article states that American Business Financial Services, Inc. (ABFS) said in a Dec. 17 regulatory filing that it thought it could repay holders of its unsecured notes even if federal regulators did not approve a new sale of debt to the public, but six days later, the company reversed its course, saying it had fallen behind on old notes because it couldn’t sell new ones and that a bankruptcy filing was a possibility.
According to the article, the company’s decision to change course highlights a debate on how best to regulate securities sales. ABFS has encountered problems with the Securities and Exchange Commission, which has held up approval of the new sale since October 2004.
“I’m assuming the SEC is not satisfied with the quality of the disclosure,” said Al, noting that regulators scrutinize these disclosures.