Hilco Trading LLC on Tuesday announced the formation of Hilco Receivables LLC.
The company, based in Northbrook, Ill., will offer contingency fee collection services and portfolio acquisitions in North America and Europe on non-performing and under-performing commercial debt. It also will purchase charged-off consumer debt such as credit card receivables, student loans, health care receivables and installment loans. Jay Stone has been named CEO.
“We are returning to the receivables business at this time because we uniquely understand the marketplace and the needs of our financial and corporate customers. This is another service for us to help customers maximize the value of any non-performing asset they may have in their portfolio as a natural extension of our overall Hilco offering,” said Jeff Hecktman, chairman and CEO of Hilco Trading. "Our original receivables business quickly established itself as an industry leader until we sold the company in 2007, and we believe it is an important practice in our overall suite of valuation and monetization services."
Before selling the company, the original Hilco Receivables had acquired nearly $4 billion face value of debt, made capital investments exceeding $225 million and monetized more than $229 million of debt through contingency fee collection work.
Stone had spent nearly six years building an accounts receivables organization called Steamboat Partners LLC.
“Jay saw the same opportunity as I did, especially to deploy large amounts of capital for portfolio acquisitions. With his experience and leadership I have no doubt he’ll repeat his past success," Mr. Hecktman added.
Also joining the management team is Buddy Beaman, who will be an executive vice president and chief operating officer. Beaman served as a vice president for Bear Stearns and First USA/Bank One, running their collections and recovery system and analytics. Bill Schmeiderer will be the senior vice president of Operations. He was director of the Commercial A/R Division at Apex Financial Management, and worked with DeVry Incorporated, where he managed student loan collections. He also worked for Household International (now HSBC) in collections management.