Avenue Financial Corp. today announced a management debt restructuring plan.

Robin Ross and Stephen Burns, the chairman and vice chairman of Avenue, respectively, entered into five-year employment contracts with Avenue in May, 2002. In order to conserve the working capital of Avenue, they had agreed to defer payment of base salaries, commencing in 2003. The deferred compensation was accrued in the records of Avenue and included in its published balance sheets under current liabilities. As at Dec. 31, 2005, accrued salaries owing to the duo amounted to approximately $1.4 million

Under the restructuring plan, Ross and Burns will agree to waive $250,000 of accrued salaries owing and Avenue will agree to settle the balance of $1,150,000 of accrued salaries owing at Dec. 31, 2005 by the issuances of 23 million common shares valued at 5¢ a share.

The plan is subject to regulatory and shareholder approval and any shares controlled by Ross and Burns will be ineligible to vote on the special resolution presented to the shareholders.

“We feel the adoption of the plan is a positive development for Avenue for two important reasons: first, it removes $1.4 million from liabilities – this represents 45% of total debt at Dec. 31, 2005; secondly, it signals our ongoing commitment to Avenue,” commented Ross, in a news release.

Avenue Financial is designs and develops investment products that are sold only by registered brokers and dealers for their high net worth investors and select institutions.