Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Franklin Credit Files Bankruptcy to Sell Mortgage Unit

Franklin Credit Holding Corp. filed for bankruptcy with plans to sell its only asset, an 80 percent stake in a mortgage-servicing unit, to help pay creditors owed $827.3 million.

Franklin listed $1.2 million in assets in a Chapter 11 filing yesterday in Newark, New Jersey. Creditors including Huntington National Bank agreed to support a plan to sell operating unit Franklin Credit Management Corp., which isn’t in bankruptcy, Franklin said in a U.S. Securities and Exchange Commission filing.

The sale may allow “Franklin Holdings stockholders to potentially retain some value,” according to the regulatory filing. The company could exit bankruptcy by August if creditors and the court approve the plan, Franklin said.

Mortgage-servicing companies, which collect payments from borrowers and oversee foreclosures, have struggled after a drop in housing prices led more homeowners to default. Residential Capital LLC, the mortgage lender and servicer owned by Ally Financial Inc., last month filed the year’s biggest bankruptcy.

The case is In re: Franklin Credit Holding Corporation 12-24411, U.S. Bankruptcy Court District of New Jersey (Newark).

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.