Embattled mortgage manager Firstfolio has been given another extension of its debt facility agreement so it can finalise a capital restructure.Yesterday, the company announced that it had reached an agreement with Commonwealth Bank, which has provided an extension of the period of its revised debt covenants under its debt facility agreement. The agreement was due to expire on June 15.The company disclosed in its financial report for the December half-year that it had previously given Commonwealth Bank an undertaking to raise equity capital and retire debt by March 30.At December 31, the company had a debt of A$64.6 million. It had a $35.3 million senior debt facility with Commonwealth Bank and a $29.3 million loan from a "director related entity". It had net assets of $40.9 million.The December financial report said: "If the consolidated entity breaches its financial covenants as a result of failing to raise capital and the CBA and other debt providers require the repayment of debt on demand, then, in the opinion of the directors, material uncertainty will exist regarding the ability of the consolidated entity to continue as a going concern."Earlier this year, Firstfolio announced a binding heads of agreement with Australian Capital Enterprise to raise $57.6 million in equity capital. That capital raising was due to be completed by June 15.Under the plan, Australian Capital Enterprise will take $1.7 million of shares in an initial placement, underwrite a rights issue that will raise $8.9 million and then take $47 million of shares in a second placement. Following the issues, ACE will hold between 50.54 per cent and 75.2 per cent of Firstfolio's issued capital, depending on the take-up of the rights issue.ACE is a special purpose company established to hold the investment in Firstfolio. It has approval for funding, subject to satisfaction of the conditions in the heads of agreement, from an unnamed US and Korean investment group.Firstfolio's only comment on the capital raising plan in yesterday's statement was that it is continuing its negotiations with ACE and expects to provide an update on the transaction in the coming weeks.Firsfolio has a loan book worth close to $20 billion, which it has built up through a series of acquisitions over the past few years. Its performance suffered as the mortgage market weakened, and the company struggled to cope with higher operating expenses and finance costs.