The creditors of embattled debt collector Collection House (ASX: CLH) have approved the $11 million sale of the business to debt buyer Credit Corp Group (ASX: CCP), ensuring the firm has a future under a new owner.
As confirmed to Business News Australia by a spokesperson for the administrators of Collection House, FTI Consulting, creditors passed the deed of company arrangement (DOCA) at a meeting held yesterday.
As such, the deal is likely to go ahead as long as the Australian Securities and Investments Commission (ASIC) gives the takeover its blessing too.
"Credit Corp are pleased to have passed this hurdle and we look forward to receiving the remaining approvals in order to complete the transaction," said a Credit Corp spokesperson.
Brisbane-based Collection House fell into administration on 30 June, after it struggled for two years during the COVID-19 pandemic.
In addition, the company’s debt facility with now-collapsed Volt Bank, secured against CLH’s substantial investment in the neobank, did not do the debt collector any favours. One day before CLH appointed administrators Volt announced it was returning its banking licence and asked all users to withdraw their funds.
Soon after CLH fell into administration, FTI Consulting announced the company was in the hole for nearly $20 million to creditors, with Westpac Banking Corporation (ASX: WBC) facing the biggest exposure to the firm.
The firm’s appointment of administrators also led to class action law firm Bannister Law announcing it was investigating Volt Bank’s collapse and the events leading up to 30 June.
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