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.