PFF Bancorp Announces Amendment of Term Loan
June 02 2008 - 9:30AM
PR Newswire (US)
RANCHO CUCAMONGA, Calif., June 2 /PRNewswire-FirstCall/ -- PFF
Bancorp, Inc. (NYSE: PFB, the "Company"), the holding Company for
PFF Bank & Trust (the "Bank"), Diversified Builder Services,
Inc. and Glencrest Investment Advisors, Inc., announced today that
effective May 31, 2008, it entered into an amendment and waiver in
connection with the restructuring of its secured term loan
agreement with a commercial bank. The secured term loan has a
current outstanding principal balance of $44.0 million. The
amendment extends the maturity date from May 31, 2008, to June 16,
2008, and provides that the lender will waive a prepayment
requirement in connection with proceeds from the sale of a loan
expected to be received by the Company. As consideration for the
amendment and waiver, the Company has agreed to make an additional
payment of $440,000 at the maturity date of the loan in the event
of the successful completion of a recapitalization which returns
the Bank's capital levels to above "well-capitalized" for
regulatory purposes. The Company is pursuing recapitalization
transactions that would strengthen the Company's capital levels and
provide for the retirement of the commercial bank loan described
above. The Company has engaged financial advisors to assist in this
effort; however, there can be no assurance that any
recapitalization will be consummated. Certain matters discussed in
this news release may constitute forward- looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements may relate to, among other
things, expectations of the business environment in which the
Company operates, projections of future performance perceived
opportunities in the market and statements regarding the Company's
strategic objectives. These forward-looking statements are based
upon current management expectations and may therefore involve
risks and uncertainties. The Company's actual results or
performance may differ materially from those suggested, expressed,
or implied by forward-looking statements due to a wide range of
factors including, but not limited to, the general business
environment, the California real estate market, competitive
conditions in the business and geographic areas in which the
Company conducts its business, regulatory actions or changes,
actions by lenders and customers, the possibility of a going
concern explanatory paragraph in our independent registered public
accountants' opinion on the Company's March 31, 2008 consolidated
financial statements, the risk that a recapitalization or other
capital-raising transaction is not successfully completed prior to
the maturity of the secured loan agreement, and other risks
detailed in the Company's reports filed with the Securities and
Exchange Commission, including the Annual Report on Form 10-K for
the fiscal year ended March 31, 2007. The Company disclaims any
obligation to subsequently revise or update any forward-looking
statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or
unanticipated events. Contact Kevin McCarthy, President and CEO or
Gregory C. Talbott, Senior Executive Vice President, COO/CFO, PFF
Bancorp, Inc. 9337 Milliken Avenue, Rancho Cucamonga, CA 91730
(909) 941-5400 http://www.pffbank.com/ DATASOURCE: PFF Bancorp,
Inc. CONTACT: Kevin McCarthy, President and CEO, or Gregory C.
Talbott, Senior Executive Vice President, COO/CFO, +1-909-941-5400,
both of PFF Bancorp, Inc.
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