MANSFIELD, Mass. Farragut Mortgage Co. said its negotiations to obtain a capital infusion have been terminated.

In a news release, the company said it would seek court protection while it attempts to reorganize its business.

A company spokesman declined to comment on the situation.

The company had said previously that an investor group might issue a letter of intent to invest $6.5 million in Farragut in exchange for a majority interest in its common stock.

Farragut's shares were suspended from trading on the American Stock Exchange earlier this months, and the Massachusetts Commission of Banks issued a cease-and-desist order against the company and denied its application to renew its lending license.

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