Asset Acceptance Commences Modified "Dutch Auction" on Stock Repurchase Plan

Asset Acceptance Capital Corp. announced it is commencing its modified “Dutch auction” tender offer as part of a larger plan to recapitalize Asset Acceptance Capital Corp. (the “Company”) and return $150 million to shareholders.

The two key elements of the recapitalization plan consist of using up to $75 million to repurchase shares of common stock from shareholders and, subject to further approval by the Company’s Board of Directors, the remaining balance of the $150 million will be paid in the form of a special one-time cash dividend to the holders of the Company’s common stock.

The repurchase of up to $75 million of shares from shareholders will be accomplished through the following two transactions:

• Through the repurchase of up to 1,858,000 shares (plus up to an additional 2% of shares outstanding),  to be accomplished by a “Dutch auction” tender offer to its shareholders. 
• The remaining balance of the $75 million will be used to repurchase shares pursuant to a stock repurchase agreement with the Company’s largest shareholder, its Chairman, President and Chief Executive Offer and its Senior Vice President and Chief Financial Officer.  Under this agreement, the Company has agreed to repurchase shares from these shareholders to maintain their pro rata beneficial ownership interest in the Company after giving effect to the tender offer.  These shareholders currently own beneficially approximately 50.4% of the Company’s outstanding shares of common stock and have elected not to tender any shares in the tender offer.  The repurchase will be at the same price per share as is paid in the tender offer and will occur on the 11th business day following the expiration date of the tender offer.