Creditrust Warehouses CFS Debt


Although asset securitization remains a part of its financing strategies, Creditrust Corp. has no plans for another offering in the immediate future, according to company officials, despite the recent purchase of $546 million in charged-off credit card debt from defunct Commercial Financial Services.

Joe Rensin, president and CEO of the Baltimorebased company, declined to project when the company would do another securitization, but he did say there would not be another issue in 1999.

Last week, Creditrust announced that it purchased a portfolio of $546 million in charged-off credit card receivables from Commercial Financial Services of Tulsa, Okla., which had filed for Bankruptcy Court protection last December. Rensin said his company has no plans to securitize this portfolio. "At this time, we intend to warehouse the paper and keep it on our books," he said.

The credit-card portfolio was the last remaining piece of Commercial Financial's credit card business sold at auction by a bankruptcy court. Creditrust said it paid $26.8 million for the package.

The package is comprised of accounts originally bought by Commercial Financial Services last year from 10 of the largest credit grantors, for about $60 million.