InQueensland

NEWS •⁠ POLITICS •⁠ BUSINESS •⁠ CULTURE

Get InQueensland in your inbox Subscribe

Collection House investors abandon company despite recovery plans

Business

Collection House has shed more than $100 million in value since its shares were reinstated to the ASX and is still facing questions over a key plank of its recovery.

 

Print article

Its market capitalisation has fallen to its lowest in almost 20 years, to be valued at less than $40 million. Before its shares were suspended last year it was trading at a value of $152 million.

And the key to its revival – the sale of its ledger to Credit Corp – is still being questioned by the consumer watchdog, the Australian Competition and Consumer Commission.

“The ACCC became aware of the transaction on December 24 and is currently considering the matter, to assess whether there has been a breach of the Competition and Consumer Act,” the organisation said.

The company recapitalised after it was crippled by the pandemic when banks stopped selling their debt at the same time as Collection House was trying to renegotiate its senior debt.

Collection House was also struggling with a new direction in dealing with customers in which it was attempting to avoid court action to recover funds to a more “measured collection process”.

It was forced to sell off its main loan book and it recorded a bottom-line loss for the June 30 year of $145 million after also being forced to raise the provisioning against its assets.

More Business stories

Loading next article