Mar. 3--Anchor BanCorp Wisconsin, parent company of AnchorBank, got some breathing room Monday on its $116.3 million debt to US Bank.

An agreement was announced to postpone Anchor's $56.3 million payment, which was due Monday, to May 29, when the entire $116.3 million will be due.

AnchorBank president Mark Timmerman said Anchor is working hard to pay off the debt. "We've got a variety of strategic options we've been working on," he said. "With the capital markets the way they are, it takes additional time these days. We're actively pursuing a long-term resolution."

Two weeks ago, Anchor said in a filing with the U.S. Securities and Exchange Commission that it didn't have sufficient cash to make Monday's payment and that it might not have been been able to raise cash for payments that would have been due June 30 and Sept. 30.

The bank also reported a net loss of $167.3 million for the last quarter of 2008, primarily due to an increase to $93 million in the provision for loan losses and a $72.2 million write-down of the value of certain assets.

Part of Anchor's debt is related to the bank's $104 million purchase in early 2008 of New Richmond-based S&C Bank, which added 13 northwest Wisconsin locations to Anchor. The bank financed about half of the acquisition with the US Bank money.

Anchor got $110 million on Feb. 3 from the sale of preferred stock to the U.S. Treasury Department, but the money can't be used for debt repayment.

Anchor was plagued last year by failed loans for commercial real estate projects including Northern Bay, a condominium development on Castle Rock Lake -- in which the bank was owed $27 million, according to foreclosure proceedings last year -- and First Place on the River, a 152-unit Milwaukee condominium project in which the bank's exposure is about $9 million.

The company's stock closed Monday at 63 cents per share on the Nasdaq exchange.

With assets of $4.8 billion, Madison-based Anchor BanCorp has 74 offices and two loan-only offices throughout Wisconsin.

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