Collection House board stands firm after lifeline hit
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The board of troubled debt-chasing outfit Collection House is standing firm after it sold off a chunk of its assets to industry rival Credit Corp in a cut-price deal.
The $160 million sale of ledgers – bundles of debt purchased from institutions such as banks – means Brisbane-based Collection House will now book a loss of $145.1 million for the past financial year.
Collection House has grasped a lifeline by selling key assets.
Jessica Shapiro
But it also provides a lifeline of cash to recapitalise Collection House, whose auditors, in accounts filed on Christmas Eve, warned of significant uncertainty about the 920-staff operation continuing as a going concern.