Debt Resolve Changes Creditors Interchange Terms, Wins Patent

Debt Resolve Inc. (AMEX: DRV) changed its plan to buy Credint Holdings Inc. for the third time since its announcement in April, extending its closing date to Sept. 14 and reducing the deal value by $10 million, according to a filing last week with the U.S. Securities and Exchange Commission.

White Plains, N.Y.-based Debt Resolve reported it would now pay $50 million in cash, $4 million in its common stock, and make a contingent payment up to $5 million related to acquisition financing for Credint.

Credint is the parent of Creditors Interchange, a Buffalo, N.Y.-based operator of 10 call centers and two offices in the U.S. and Canada, providing consumer and commercial debt collection services.

The new terms also reduces the seller’s indemnification cap to $7.5 million from $9 million, and eliminates Debt Resolves’ obligation to pay a break up fee if it can’t obtain financing or receive stockholder approval for the deal, according to the SEC filing.

The maximum price tag of $59 million for Credint is 14 percent less than the $69 million Debt Resolve agreed to pay for Credint when the deal was first announced on April 30. The deal was originally scheduled to close on June 30 but that was extended in July to August 31.

Debt Resolve, a provider of an online debt settlement and collection system, announced on Tuesday it had been awarded its fourth U.S. patent related to its online debt collection program.