20 November, 2009
UPDATE 1-Axiant files bankruptcy, to be bought by NCO Group
NEW YORK, Nov 20 (Reuters) - Axiant LLC, a provider of legal collections services, said on Friday it filed for Chapter 11 bankruptcy protection and will be sold NCO Group Inc, a provider of accounts receivable outsourcing services.
Axiant had between $10 million and $50 million of both assets and debts, according to its Chapter 11 filing on Friday with the U.S. bankruptcy court in Wilmington, Delaware.
The Huntersville, North Carolina-based company said it filed after its cash flow slid in 2008 and 2009 because of a decline in volume from key customers and a reduction in collection rates stemming from the recession.
While Axiant said it could once handle $55 million in collections per month, it has closed two call centers and reduced its workforce by more than 95 percent, to 50 employees from 1,069.
Axiant expects the NCO transaction to close in the first quarter of 2010, subject to better offers that might be received at auction, and approval of the bankruptcy court.
The bankruptcy case is In re Axiant LLC, U.S. Bankruptcy Court, District of Delaware, No. 09-14118.
(Reporting by Jonathan Stempel; Editing by Richard Chang)
Source: http://www.reuters.com
UPDATE 1-Axiant files bankruptcy, to be bought by NCO Group Added: (20.11.2009)
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