Garnet Capital Completes $2.9 Billion Loan Portfolio Liquidation

The transaction marks the full liquidation of the bankruptcy estate's loan assets.

Apr. 7, 2026 at 4:09pm

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An extreme close-up of gears, levers, and other heavy industrial banking machinery, conveying the intricate processes behind the liquidation of a large distressed loan portfolio.The liquidation of a $2.9 billion loan portfolio required specialized expertise to navigate the complex financial infrastructure and mechanics involved.Harrison Today

Garnet Capital Advisors, a leading loan sale advisory firm, announced the closing of a $2.9 billion loan portfolio sale on behalf of the Chapter 7 trustee overseeing the bankruptcy estate of Collins Asset Group, LLC (CAG), a Texas-based debt buyer. The portfolio consisted of consumer installment loans, auto loans, credit card receivables, and second-lien mortgage loans acquired from various financial institutions.

Why it matters

The successful liquidation of this large and complex loan portfolio represents an efficient outcome for the trustee and the estate's creditors, highlighting Garnet Capital's expertise in managing the sale of distressed loan assets across multiple asset classes and performance stages.

The details

The portfolio sale was the result of a competitive process that attracted participation from more than 60 prospective investors, generating over a dozen bids. The portfolio was ultimately sold to a single investor, with the transaction closing within two months of launch. Garnet's portfolio analytics helped identify the pockets of value embedded in these assets, enabling the firm to deliver a favorable outcome for the trustee.

  • CAG filed for voluntary Chapter 7 bankruptcy protection on June 4, 2025.
  • A trustee was appointed on August 1, 2025 to manage the orderly disposition of estate assets.
  • The $2.9 billion loan portfolio sale closed in April 2026.

The players

Garnet Capital Advisors

A leading loan sale advisory firm serving banks, credit unions, hedge funds, and specialty finance companies, with more than 20 years of experience across performing, subperforming, and charged-off loans in the consumer, commercial, and residential sectors.

Collins Asset Group, LLC (CAG)

A Texas-based debt buyer that filed for voluntary Chapter 7 bankruptcy protection in June 2025.

Chapter 7 Trustee

The trustee appointed in August 2025 to manage the orderly disposition of CAG's bankruptcy estate assets.

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What they’re saying

“A portfolio of this size and complexity – spanning multiple asset classes, originator types, and performance stages – required a disciplined process and broad market reach. Garnet's portfolio analytics highlighted the pockets of value embedded in these assets, and we were pleased to deliver an efficient outcome for the trustee and the estate's creditors.”

— Lauren Falls, Vice President at Garnet Capital

The takeaway

This successful loan portfolio liquidation demonstrates Garnet Capital's expertise in managing the sale of distressed assets, even in complex bankruptcy cases involving a diverse range of loan products. The firm's analytical capabilities and broad market reach enabled it to maximize value for the trustee and creditors, highlighting the importance of specialized advisory services in navigating challenging financial situations.