UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
DATE
OF REPORT (DATE OF EARLIEST EVENT REPORTED)
December
1, 2008
(Exact
name of registrant as specified in its charter)
(State
or
other jurisdiction of incorporation)
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0-26906
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22-3388607
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|
(Commission
File Number)
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(IRS
Employer Identification No.)
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210
Sylvan Avenue, Englewood Cliffs, New Jersey
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07632
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(Address
of principal executive offices)
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(Zip
Code)
|
Registrant’s
telephone number, including area code: 201-567-5648
Check
the
appropriate box below if the Form 8-K is intended to simultaneously satisfy
the
filing obligation of the registrant under any of the following provisions (see
General Instruction A.2 below): N/A
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act
(17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act
(17 CFR 240.13e-4(c))
Item
8.01. Other Events
On
March
2, 2007 Palisades
Acquisition XVI, LLC (“Palisades XVI”), an affiliate of Asta Funding, Inc. (the
“Company”), entered into a Receivables Financing Agreement, as amended on July
1, 2007, December 27, 2007 and May 19, 2008 (as amended the “Agreement”), with a
major financial institution, pursuant to which Palisades XVI borrowed
approximately $227 million in order to pay a portion of the purchase price
for a portfolio of approximately $6.9 billion in face value receivables. On
December 1, 2008, as a result of the actual collections being lower than the
minimum collection rates required under the Agreement for the month ended
November 30, 2008, a termination event occurred under the Agreement. In order
to
resolve this issue, the parties to the Agreement executed a Waiver (the
“Waiver”) dated as of December 1, 2008. The Waiver provides that, among other
things, the termination event will be waived until December 22, 2008.
The
description of the Waiver set forth herein does not purport to be complete
and
is qualified in its entirety by reference to the full text of the Waiver, a
copy
of which will be filed as an exhibit to the Company’s Annual Report on Form 10-K
for fiscal year ended September 30, 2008.
SIGNATURE
Pursuant
to the requirements of the Securities and Exchange Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
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ASTA FUNDING, INC.
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| Date: December
5, 2008 |
By: |
/s/ Mitchell Cohen |
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Mitchell
Cohen |
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Chief
Financial Officer |