DENVER BUSINESS JOURNAL - SquareTwo Financial Services, a Denver-based asset recovery and management company, said it's filing Chapter 11 bankruptcy.
SquareTwo said it's filing a "prepackaged" bankruptcy plan, one that would have Resurgent Holdings LLC "acquire substantially all of SquareTwo's portfolio of assets."
Resurgent Holdings is buying SquareTwo’s portfolio of receivables, but not its U.S. workforce, facilities, and IT platform. "Therefore, we will be winding down our U.S. SquareTwo Financial ... operations," the company said.
"Unfortunately, changes in the regulatory and business environment over the last several years have had a significant economic impact on the company. We reviewed many strategic alternatives over the past nine months to find a path that would allow us to operate competitively and continue operations with our workforce in place. We ultimately determined that the sale to Resurgent and the attendant wind-down was the most value-maximizing approach," said J.B. Richardson, Jr., chief operating officer of SquareTwo, in a Sunday statement.
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