A U.S. District Court judge has approved the sale of embattled debt purchaser CAMCO?s entire portfolio of charged off consumer receivables. The portfolio was auctioned off last week to the public.
According to the judge?s office, the Hon. Robert W. Gettleman approved the winning bidder, New York-based debt purchaser RJM Acquisitions, in proceedings held yesterday. RJM submitted the highest bid for the entire consumer receivable portfolio of Capital Acquisitions and Management Corp. (CAMCO) at a public auction held last week.
Last month, Gettleman had ordered the assets of CAMCO to be auctioned off to the pubic in response to a suit filed by the Federal Trade Commission alleging illegal debt collection practices.
The $1.75 billion face value portfolio was divided into four pools for the auction. Ultimately, RJM placed a high bid on the entire portfolio that surpassed the aggregate price for the bid amounts on the four separate pools. RJM?s final bid of $6.8 million ended the auction for the accounts.
The results of the previous poll auctions are as follows:
- Pool 1 — a $9.2 million pool in pledged accounts with cash flow — sold for $1.1 million to an Ohio-based debt purchaser.
- Pool 2 — a $23 million portfolio of not pledged accounts with cash flow — sold for $1.9 million to RJM Acquisitions.
- Pool 3 — a $110.5 million pool of seasoned accounts believed to be in statute — sold for $500,000 to a New Jersey-based debt purchaser.
- Pool 4 — a $1.6 billion pool of seasoned accounts believed to be out of statute — sold for $1.3 million to the same company that won Pool 3.
After the four separate auctions were completed, bids were taken on the whole portfolio. In aggressive bidding, RJM finally won the entire portfolio with a bid of $6.8 million.
