Garnet Capital Advisors, a loan sale advisor, closed consumer loan sales totaling $35 million in UPB. The loans were sold on behalf of Huron Trustee Group, a consulting firm in North America, following the bankruptcy of the originator and initial servicers.
This loan sale featured a blend of consumer loan products including home improvement, student loans, motorcycle, pilot training, RVs and more. The sale was completed in two parts: the first consisted primarily of performing loans, while the second included a mix of performing and charged-off loans. As part of our comprehensive portfolio analytics process, Garnet coordinated with 5+ servicers to compile accurate and comprehensive cash flow schedules for each loan type.
The sales featured a two-round bid process with the offering schedule coordinating with court requirements and timeframes. This process, which attracted multiple registered buyers, resulted in a successful sale.
“The Garnet approach of vetting the data and making sense of the assets was critical to success of the sale,” Timothy Madigan, managing director at Garnet Capital, said. “We were able to work with the seller and the buyer to make sure the sale was completed in compliance with the bankruptcy court. This was a complicated deal given the various asset types and numerous servicers, and the fact the loans were entangled in a bankruptcy case.”
