NCO Group To Buy Axiant In Bankruptcy Court Sale
Axiant, a debt collector, was driven into bankruptcy by recession.
November 23, 2009
Axiant LLC, a debt collector that filed for Chapter 11 bankruptcy protection in Delaware on Nov. 20, said it agreed to be acquired by NCO Group, a provider of accounts-receivable outsourcing services.
Axiant, which announced its bankruptcy and the sale in a press release, is based in Huntersville, N.C. The company blamed its bankruptcy on a decline in cash flow that resulted from a drop in the volume of money collected for customers amid the recession.
Axiant has assets and liabilities totaling $10 million and $50 million, according to court documents. Axiant owes $10.5 million to collection law firm Mann Bracken, its largest creditor.
Axiant said it expects to complete the sale to NCO in the first quarter of 2010 pending the results of a competitive auction and court approval. Axiant brought on investment bank SSG Capital Advisors LLC, based in West Conshohocken, Pa., to assist in the sale.
The case, number 09-14118-MFW, was filed in U.S. bankruptcy court in Delaware and is being overseen by Judge Mary Walrath.
Latham & Watkins will serve as co-counsel along with Delaware-based Young Conaway Stargatt & Taylor.
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