I
t looks like a portion of embattled Long Island, N.Y.-based subprime auto lender Condor Capital Corp.’s loan portfolio may have a buyer, or buyers, according to a document filed by the court-appointed Receiver yesterday.
The buyers of the portfolio indicated in the document include Fortress Credit Corporation and Ares Management LLC, as well as California-based Westlake Services LLC. That could mean that Condor’s loan facility lender, Wells Fargo, will get the $168 million it has been fighting for in court sooner rather than later.
The court memo, addressed to U.S. District Judge Colleen McMahon, said the buyers had requested a specific order from the court authorizing the sale of Condor’s receivables to them.
In a handwritten note, the judge wrote “I will issue an order formerly affirming that the Receiver has absolute discretion to dispense of the assets of Condor and pay off the Wells Fargo loan.”
She then instructed the Receiver to submit a payment order.
Receiver Denis O’Conor, of New York City based Alix Partners LLP, said in the memo that the buyers were the leading bidders in an auction process. They are targeting November 14 as a closing date on the transaction. The buyers and the Receiver also asked for a shortened or expedited process to obtain the legal comfort the buyers seek.
Significant terms of the expected transaction include a purchase price equal to 92% of the Unpaid Principal Balance of the Receivables as of the cut-off date. The pool of loans selected by the buyers will include current customer accounts and is expected to yield a payment to Condor of around $185 million.
The Receiver wrote that as of October 31, 2014, the unpaid balance of Condor’s entire portfolio is around $389 million, of which about $312 million is current.
After the repayment on the Wells Fargo facility, the excess cash from the transaction will be available to reserve for customer refunds and restitution amounts identified by the New York State Department of Financial Services.
