Debt Collector SquareTwo Files for Bankruptcy Protection in U.S.

Debt collector SquareTwo Financial Services Corp. filed for bankruptcy protection in New York with plans to sell its business to another firm that specializes in unpaid consumer bills (In re SquareTwo Financial Services Corp., Bankr. S.D.N.Y., 17-10659, petition filed 3/19/17).

Resurgent Holdings LLC, an affiliate of Sherman Financial Group LLC, has agreed to buy the company in a deal worth about $264 million, SquareTwo’s chief operating officer, J.B. Richardson Jr., said in a court filing Sunday. The proposed sale was worked out before SquareTwo entered Chapter 11 and has the backing of almost all its creditors, Richardson said. ...