U.S. Bancorp has given Anchor BanCorp Wisconsin Inc. another three months to raise capital to pay a $116.3 million debt.
Anchor, a thrift holding company in Madison, said Monday after the market closed that U.S. Bancorp had relieved it of the requirement to pay about half of the loan that day. The entire balance is now due May 29, Anchor said.
Since the loan is secured by the company's stock in AnchorBank, a default would give U.S. Bancorp the option of seizing the thrift.
"This amended credit agreement with U.S. Bank provides us with additional time needed to work towards finalizing a financing strategy appropriate to the realities of today's capital markets," Doug Timmerman, Anchor's chairman and chief executive, said in a press release. "At this point we are waiting for the capital markets to warm to the financial sector."
U.S. Bancorp had amended the terms of the loan twice before to give Anchor more time to pay.
Last month, the $4.8 billion-asset company warned it was in jeopardy since it did not have the cash on hand to make a $56 million payment by March 2. (The balance would have been due at yearend.)