Recapitalizing the Business by Selling a Debt Portfolio

April 12th, 2010

How to sell a $6.9 billion portfolio
in less than two months?

Challenge:
In December of 2006, debt purchasing firm Great Seneca Financial Corporation decided to recapitalize the business by selling their entire debt portfolio. However, the sales process had to be completed in less than two months due to time constraints related to litigating accounts. Could they successfully divest a $6.9 billion portfolio quickly during one of the busiest times of the year for portfolio sales?

Solution:
Great Seneca hired Kaulkin Ginsberg to manage the sale. Our deep connections within the industry enabled us to quickly source a short list of financially qualified and motivated players, while still establishing a confidential, competitive process. Using KIS Track, our in-house technology, prospective buyers could access a tremendous volume of account data – 2.5 million records – safely and securely over the Internet. This dramatically compressed the time needed for buyers to evaluate the paper.

We were able to have the buyers meet our aggressive timeframes, and the entire sale process was completed in a month and a half. On February 7, 2007, Great Seneca executed an agreement to sell the portfolio to Asta Funding.

The powerful combination of industry connections and expertise in the sale process allowed us to quickly secure a winning bidder, resulting in the largest debt portfolio sale, in terms of purchase price, ever conducted in the industry.

What can we do for you?

Contact Mike Ginsberg,  at 240-499-3800 or by email to discuss your interests in confidence.

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