Mortgage lender Resimac has made an eleventh-hour bid to fund the recapitalisation of Firstfolio. Resimac has put forward an alternative to the recapitalisation proposal Firstfolio's board has negotiated with the investor group, IZN Investments ACE Management.Firstfolio made an announcement to the Australian Securities Exchange yesterday, saying that Resimac and the ICM Group had made an unsolicited proposal to raise A$7.7 million of equity, in the form of a fully underwritten rights issue, and a $15 million loan from Resimac.The IZN proposal, which has been in the works for most of this year, is for $50.2 million of equity.Firstfolio's statement, made earlier, said: "After careful consideration and consultation with Firstfolio's legal and financial advisers, the independent directors have concluded that the Resimac proposal is inferior to the IZN recapitalisation."Firstfolio is holding a general meeting on November 27 so that shareholders can vote on the IZN recapitalisation scheme. The independent directors have recommended a vote in favour of the proposal.Firstfolio's chairman, Eric Dodd, said: "While the proposal from Resimac and ICM is welcomed, the independent directors believe it does not provide a solution to Firstfolio's long-term funding issues or [its need for] capital for growth, and risks further delays at a time when the company requires funding to continue as a going concern."Net debt would be $14.2 million under the IZN proposal and $54.3 million under the Resimac proposal. And the IZN proposal would leave more than $16 million for working capital, marketing and growth.Firstfolio has given a commitment to its main lender, Commonwealth Bank, that it will reduce its gearing.