The stock of Debt Resolve late yesterday fought back from an early morning decline of 45 percent to close at $2.70, down 8 percent for the day. The stock was up slightly in midday trading today.
James D. Burchetta, Debt Resolve CEO, attributed the rebound to the company’s filing yesterday with the U.S. Securities and Exchange Commission that it plans to close on its purchase of Creditors Interchange by August 31, subject to shareholder approval. Debt Resolve and Creditors Interchange initially planned to close on the deal in June but both parties have agreed to extend the closing to the end of this month. Debt Resolve has raised $40 million in investor commitments to the deal, according to the SEC filing.
White Plaines, N.Y.-based Debt Resolve in May reported it planned pay $64 million for Creditors, including $60 million in cash and $4 million in its stock. Buffalo, N.Y.-based Creditors is a 47-year-old contingency collection agency that operates 10 call centers in the US and Canada, and a call center in India.
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