SquareTwo Financial announces US$405.1M portfolio asset sale to Resurgent Holdings
June 05, 2017
On June 5, 2017, a U.S. Bankruptcy Court judge cleared the sale of SquareTwo Financial Services Corp. to fellow consumer debt-buyer Resurgent Capital Services LP. Resurgent has agreed to invest US$405.1 million that, subject to certain price adjustments, will result in a purchase price at closing of approximately US$252 million.
Resurgent, through its subsidiaries and affiliates, is a purchaser, manager and servicer of domestic and international consumer debt portfolios across the credit spectrum. It is an affiliate of Sherman Financial Group LLC, a privately held global investment company.
Upon completion of the transaction and following the transfer of the servicing of accounts in the U.S. to Resurgent and its affiliates, SquareTwo will wind-down its U.S. operations, including those of its subsidiary Fresh View Solutions. The wind-down process is expected to be completed by the end of 2017. SquareTwo's Canadian operations will continue under Resurgent's ownership.
McCarthy Tétrault LLP is advising Resurgent Holdings LLC with a team led by Patrick M. Shea and Alain Tardif.