Condor Capital selling loans to pay off debt
Condor Capital specialized in lending to low-income borrowers without the credit history or financial wherewithal to qualify for a conventional loan. This photo is from May 2012. Credit: Google
A court-appointed receiver for Condor Capital Corp., a Long Island subprime auto lender accused of bilking customers, has reached a deal to sell a portion of the company's loans for $185 million.
The sale, to a group including Fortress Credit Corp. and Ares Management LLC, will allow Condor to pay off its $168 million line of credit from Wells Fargo, the receiver, Denis O'Connor, said in a court filing.
The Hauppauge-based lender, whose entire loan portfolio totals roughly $389 million, specializes in high-interest loans to borrowers with poor credit. The company has been barred from lending since April, when state regulators accused it of pocketing overpayments from up to 39,000 customers.
The remainder of the proceeds from the pending sale will go toward repaying customers, O'Connor said.
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