UPDATE: AMCORE Fncl (AMFI) has entered into an amendment with its lender. – Last $1.10

UPDATE:  AMCORE Fncl AMFI has entered into an amendment with its lender. Co has entered into an amendment with its lender with respect to the previously disclosed technical default under its $12.5 mln credit facility. The amendment modifies the covenant relating to capitalization at the parent and bank level so that co is currently in full compliance with the terms of its credit agreement. In addition, the amendment provides that the Company will pay all accrued interest through the date of the amendment, and thereafter make monthly interest payments under the agreement. Co also will establish a cash interest reserve account with JP Morgan Chase in the amount of ~$1.1 mln, which amount equals anticipated interest payments due from the date of the amendment through the maturity of the facility in April 2011. In accordance with the terms of the amendment, co made the interest payment and established the interest reserve account on December 18. AMCORE is current with all its payments due under the facility. “We would expect that the bank will no longer be deemed significantly undercapitalized for regulatory purposes.” … AMFI – last $1.10, suggested at $0.70.  Retain position.