American Business Financial picks Ocwen as stalking horse bidder for servicing rights

By Ellen Chang

Houston, March 7 - American Business Financial Services, Inc. chose Ocwen Federal Bank FSB as the stalking horse bidder in an auction of its servicing rights and advance receivables, according to a March 4 filing with the U.S. Bankruptcy Court for the District of Delaware.

Ocwen will pay $20.27 million in total, made up of the $22.64 million full value of the advance receivables, less a $6.49 million inducement fee for assignment of servicing rights and other adjustments.

The agreement has a break-up fee of $405,374 plus up to $200,000 of expenses if another bidder is chosen.

The securitization insurers have not agreed to the proposed sale but the company said it is working to obtain their consent by March 9.

The sale is scheduled to close by April 30.

The bidding procedures objection deadline is March 8 and the bidding procedures hearing is March 9.

The deadline for bids is March 21 and the auction date is March 28.

The hearing for the sale is scheduled for March 29.

Philadelphia-based American Business Financial Services originates, sells and services home equity loans and money mortgage loans.

American Business Financial filed for Chapter 11 on Jan. 21 in the U.S. Bankruptcy Court for the District of Delaware. The company's Chapter 11 case number is 05-10203.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.