Signature Group Holdings, a financial services enterprise with current principal activities in strategic acquisitions and special situations lending, has completed the sale of its performing residential loan portfolio.
As a result of the sale, the Sherman Oaks, Calif.-based company will receive net proceeds of $18.9 million, resulting in a $3.8 million gain to be recognized in the second quarter.
According to Chris Colville, CEO of Signature Group Holdings, an auction process was conducted for these assets to take advantage of favorable market conditions. Colville added that he was satisfied with the results.
“The sale of these legacy assets represents continuing execution of management’s strategy to strengthen the balance sheet in order to facilitate additional acquisitions,” Colville stated.
Separately, Signature announced that the final decree for the bankruptcy case of the company’s predecessor, Fremont General Corp., was entered by the judge on April 15.
In addition, Signature said it is in “advanced discussions” to also
Signature’s special situations lending business segment focuses on providing senior secured and other structured financing in the form of newly originated commercial and industrial loans, leases and real estate mortgages as well as acquisitions of similarly structured debt instruments, frequently at a discount.
Meanwhile, the company’s strategic acquisitions segment focuses on obtaining significant equity interests in middle market companies through direct equity investments or structured debt transactions that result in equity ownership.
