Business

Eagle Finance Corp. (NASDAQ: EFCF), based in Gurnee IL, finances and services sub-prime auto finance receivables, with $250 million revenues.

Client Objective

White Oak Group was engaged as financial advisor to Eagle and its Board of Directors to explore and develop strategic alternatives to maximize shareholder value and creditor recoveries. Developments in the sub-prime auto finance segment reduced sources of financing available to industry participants. Unable to finance and originate new finance receivables, Eagle continued to service its owned and managed receivables assets, and White Oak Group assisted Eagle and its Board in developing and reviewing recapitalization and sale alternatives.

Results

In order to maximize available proceeds, White Oak Group initiated discussions with sub-prime auto finance industry participants, other finance companies, financial buyers and investor groups, and developed alternatives involving the sale of assets and transfer of Eagle’s servicing platform. We reviewed with the Board several letter of intent proposals and negotiated purchase agreements from competitive buyers, in order to describe to the Board, and to Eagle’s creditors, terms that maximized creditor recoveries. Through the ongoing operation of the business and collection of owned and managed receivables, and through the announced sale of its operating assets to Ameristar Financial Company, LLC, Eagle raised proceeds to fully satisfy its senior lenders and partially satisfy its junior creditors. The major portion of Eagle’s employees and management continued in roles with the successor business.

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