FirstCity Financial Corporation Announces Extension by Lender

FirstCity Financial Corporation (NasdaqGS: FCFC) announced Friday that the company has obtained the consent of the Bank of Scotland, as agent and lender, to the delivery of the annual audited and unaudited financial statements of FirstCity for Fiscal Year 2006, the monthly financial statements for January 2007 through May 2007, the Annual Report on Form 10-K for the year ended December 31, 2006 and the Form 10-Q for the period ending March 31, 2007, by a date not later than June 30, 2007. The extension was granted under the terms of both FirstCity’s Revolving Credit Agreement dated as of November 12, 2004, and the acquisition facility provided to FH Partners L.P., a wholly owned affiliate of FirstCity, under the Revolving Credit Agreement dated as of August 26, 2005, to allow FirstCity and FH Partners, L.P. to continue to utilize those loan facilities in the normal course of business.
 
FirstCity had previously announced that the filing of its 2006 10-K would be delayed as a result of the independent investigation by the Audit Committee of FirstCity’s Board of Directors. The independent investigation is ongoing, and, as a result, FirstCity is currently unable to estimate when it expects to file its 2006 Form 10-K and the Form 10-Q for the period ending March 31, 2007 or announce results for each of the year and quarter ended December 31, 2006 and for the quarter ended March 31, 2007.

FirstCity Financial is a diversified financial services company with operations dedicated to portfolio asset acquisition and resolution with offices in the U.S. and with affiliate organizations in France and Mexico.