Asset Acceptance Capital Corp. Secures Amended Credit Facility

WARREN, Mich. — Asset Acceptance Capital Corp. (NASDAQ: AACC), a leading purchaser and collector of charged-off consumer debt, today announced that it has reached an agreement with its lenders on an amendment to its existing senior secured credit facility. The updated revolving credit facility expands the Company’s borrowing capacity from approximately $37 million as of March 31, 2010 to $65.9 million based on the add-back of certain charges.

Rion Needs, President and Chief Executive Officer, commented, "Working collaboratively with our lenders, we have amended our credit facility to loosen its most restrictive covenants. The amended credit facility nearly doubles our capacity, enabling us to meet our purchasing goals for 2010 as pricing remains attractive, as well as execute against our long-term growth strategy. We appreciate the continuing support of our lending group which we believe is an endorsement of the company’s strength and growth strategy."

The amendment, entered into on Friday, May 28, 2010, modifies the terms and certain other provisions of the facility. The agreement amends certain definitions in the Credit Agreement to provide the Company with relief on the financial covenants with respect to fourth quarter 2009 non-cash impairment charges on purchased receivables and potential charges and losses, including defense costs resulting from the Federal Trade Commission’s investigation of the Company’s debt collection-related practices. The amendment also increases the rate of interest the Company pays on certain types of borrowings under the Credit Agreement at certain leverage ratios. These conditions, as well as other material provisions of the amended credit facility, are described in the company’s 8-K filing that will be filed later in the day with the Securities and Exchange Commission.

As previously disclosed, on April 6, 2010, the FTC delivered a letter to the Company which stated its view that the Company may have engaged in certain violations of the FDCPA, FTC Act and FCRA laws, offered it an opportunity to resolve the matter through consent negotiations, and forwarded a proposed consent decree. The amendment adds back to Adjusted EBITDA and Consolidated Net Worth for purposes of financial covenant calculations the aggregate amount of the Company’s losses and charges from the FTC investigation mentioned above, capped at $7.0 million in total for purposes of the credit agreement. The Company is currently unable to estimate the potential liability for this matter.

Needs commented, "We continue to maintain an open dialogue with the FTC since receiving their communication in early April. We will continue to work diligently to resolve this matter with the FTC and hope to provide an update in the next several quarters."

About Asset Acceptance Capital Corp.
For more than 45 years, Asset Acceptance has provided credit originators, such as credit card issuers, consumer finance companies, retail merchants, utilities and others an efficient alternative in recovering defaulted consumer debt. For more information, please visit www.AssetAcceptance.com.