Deal Is Called Largest Debt Sale
Great Seneca Financial Corp., a debt purchasing firm that acquires portfolios from financial institutions, retail card issuers and national debt buyers, has reached an agreement to sell a debt portfolio with an aggregate face value of roughly $6.9 billion in a deal that is being called the largest consumer receivables sale in history.
The buyer is Asta Funding, a New Jersey-based debt investor and collections firm, which agreed to pay $300 million in cash for the portfolio. Kaulkin Ginsberg Co. here served as strategic advisor to the seller.
"This portfolio sale represents the largest debt sale, in terms of purchase price, ever conducted in the industry," said Mark Russell, a director at Kaulkin Ginsberg.
Kaulkin Ginsberg estimates that debt buyers acquired an estimated $158 billion dollars in face value of consumer debt worldwide last year.
The deal was expected to close in March. (c) 2007 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com