ENGLEWOOD CLIFFS, N.J., Jan. 7, 2014 (GLOBE NEWSWIRE) -- Asta Funding, Inc. (Nasdaq:ASFI) (the "Company" or "Asta"), a financial services receivable asset management and liquidation company, today announced the acquisition of an 80% ownership interest in CBC Settlement Funding, LLC ("CBC"), a structured settlement financing company whose primary office is located in Conshohocken, Pennsylvania. On December 31, 2013, the Company, through a subsidiary acquired 100% of the ownership of CBC and its affiliate, CBC Management Services, LLC, for approximately $5.9 million. At the closing, the operating principals of CBC, namely William J. Skyrm, Esq. and James Goodman, were issued a 20% interest in CBC (10% to Mr. Skyrm, and 10% to Mr. Goodman). William J. Skyrm, Esq. and James Goodman, have over 30 years combined experience in the structured settlement industry.
CBC purchases periodic payments under a structured settlement and annuity from individuals in exchange for a lump sum payment. In addition, the Company, through another subsidiary has agreed to provide financing to CBC of up to $5 million.
CBC has a portfolio of structured settlements with a present value of more than $30 million, which is financed by approximately $25 million of debt, including a $12.5 million line of credit from an institutional source and notes issued by CBC. The value of the future payments of the portfolio is over $44 million.
As the Company has acquired and managed charged off and non-performing receivables since its inception, and more recently has been financing personal injury claims, acquiring a structured settlement business is a further step in diversifying the Asta portfolio that utilizes the expertise developed over the last fifty years since the inception of its predecessor, Asta Group, Inc.
Gary Stern, Chairman, President and CEO of the Company commented, "We are very excited about our investment in CBC Settlement Funding, LLC and the future prospects of the structured settlement space. Structured settlements are an asset class that has tremendous growth potential for us and is a synergistic business that works well with our overall business model." Mr. Stern continued, "We welcome Bill Skyrm and James Goodman to the management team and look forward to working with them well into the future to further grow CBC Settlement Funding."
Mr. Goodman commented, "It is an exciting time in the structured settlement space as the consumer need for liquidity has never been greater due to scarcity of consumer lending from traditional banks." Mr. Skyrm continued, "The investment by Asta will allow CBC to accelerate our growth plans to increase market share. CBC will further benefit from Asta's ability to access capital markets efficiently."
Based in Englewood Cliffs, NJ, Asta Funding, Inc., is a leading consumer receivable asset management company that specializes in the purchase, management and liquidation of performing and non-performing consumer and other receivables. For additional information, please visit our website at http://www.astafunding.com.
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