SquareTwo Financial Corp files for Chapter 11

Colorado-based debt collector SquareTwo Financial Corp filed for Chapter 11 bankruptcy on Sunday in the U.S. Bankruptcy Court for the Southern District of New York, the company said in a statement. SquareTwo reached an agreement with Resurgent Holdings LLC to take ownership of the debt collector’s portfolio of assets, with Resurgent agreeing to invest $405 million, according to the filing. SquareTwo Chief Operating Officer J.B. Richardson said the proceeds from the agreement would result in a final purchase price of $264 million in exchange for 100 percent of the equity of the reorganized company.