UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 26, 1997
Commission file number 0-17771
FRANKLIN CREDIT MANAGEMENT CORPORATION
(Exact name of small business issuer as specified in its charter)
Delaware 75-2243266
(State or other jurisdiction
of incorporation or organization) (I.R.S. Employer Identification No.)
Six Harrison Street
New York, New York 10013
(212) 925-8745
(Address of principal executive offices, including zip code, and telephone
number, including area code)
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Item 4. Change in Registrant's Certifying Accountant.
Franklin Credit Management Corporation (the "Registrant") terminated
the service of McGladrey & Pullen, LLP ("M&P") as independent auditors for the
Registrant on July 1, 1997.
None of the reports of M&P on the financial statements of the Registrant
for either of the past two fiscal years contained an adverse opinion or a
disclaimer of opinion, or was qualified or modified as to uncertainty, audit
scope or accounting principles. During the Registrant's two most recent fiscal
years and subsequent interim period preceding the termination of M&P, there
were no disagreement(s) with M&P on any matter of accounting principles or
practices, financial statement disclosure or auditing scope or procedures, which
disagreement(s), if not resolved to the satisfaction of M&P would have caused
it to make reference to the subject matter of the disagreement(s) in connection
with its report. None of the reportable events listed in Item 304(a)(1)(v) of
Regulation S-K occured with respect to the Registrant during the Registrant's
two most recent fiscal years and the subsequent interim period preceding the
termination of M&P.
On July 1, 1997, the Registrant with the approval of its Broard of
Directors engaged Deloitte & Touche, LLP ("D&T") as its independent auditors.
During the Registrant's two most recent fiscal years and the subsequent
interim period preceeding the engagement of D&T, neither the Registrant nor
anyone on its behalf consulted D&T regarding the application of accounting
principles to a specific completed or contemplated transaction, or the type of
audit opinion that might be rendered on the Registrant's financial statements,
and no written or oral advice concerning same was provided to the Registrant
that was an important factor considered by the Registrant in reaching a
decision as to any accounting, auditing or financial reporting issue.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
1. Letter of M&P, dated July 1, 1997, to the Securities and Exchange
Commission.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized
July 2, 1997 FRANKLIN CREDIT MANAGEMENT
CORPORATION
By: /s/ JOSEPH CAIAZZO
Name: Joseph Caiazzo
Title: Vice President and Chief
Operating Officer
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Exhibit (c)
McGladrey & Pullen, LLP RMS
Certified Public Accuntants and Consultants International
July 1, 1997
Securities and Exchange Commission
Washington, DC 20549
We were previously the independent accountants for Franklin Credit Management
Corporation, and on March 7, 1997, we reported on the consolidated financial
statements of Franklin Credit Management Corporation and subsidiaries as of and
for the two years ended December 31, 1996. On July 1, 1997, we were terminated
as independent accountants of Franklin Credit Management Corporation.
We have read Franklin Credit Management Corporation's statements included under
Item 4 of its Form 8-K dated July 1, 1997, and we agree with such statements.
McGladrey & Pullen, LLP
Worldwide
One Church Street Services
New Haven, Connecticut 06510-3330 Through
(203) 773-1909 FAX (203) 773-0591 RMS International
