Franklin Credit Holding has announced that it has become the parent company of Franklin Credit Management
Franklin Credit Holding has announced that it has become the parent company of Franklin Credit Management through the adoption of a holding company form of organisational structure.
The reorganisation is expected to result in Franklin Credit Management, which holds the company’s servicing platform, having positive net worth as a result of having assigned and transferred to a newly formed sister company ownership of the entities holding beneficial ownership of the company’s loan portfolio and the related indebtedness; and, accordingly, being able to comply with applicable net worth requirements to maintain licenses to service and collect loans in
The reorganisation is also expected to enhance the company’s ability to grow its servicing business and take advantage of other corporate restructuring opportunities should they become available.
The business operations and financial condition of the company taken as a whole, including Franklin Servicing, on a consolidated basis, including the company’s consolidated substantial negative net worth, did not change as a result of the reorganisation.
Other than the difference in their names, the certificate of incorporation, by-laws, authorised capital stock, outstanding capital stock, board of directors and officers of Franklin Holding are the same as those of Franklin Credit Management prior to the reorganisation.