This will get everyone thinking, exactly what this site should...

This will get everyone thinking, exactly what this site should be doing.
What if this is how the Balbec model roughly works ?
Clearly this is the problem none of us understand the negatives and all that is being suggested is CLH are giving away the family silver.
If you "give" away old debt that still has some collection value ........... that will be valuable to someone. Have a look at what Balbec do.
Then if you reinvest that money in higher returning collectables why on earth would you not do that.
A big problem with CLH is for a period they did not invest in growing PDL's ........ this seems to be a logical way to fast track to better quality debt, still keep control and make it a win win for everyone. Plus they are clearly collecting more per hr these days than they were.
Naturally I do not know the finer details but what if this spreadsheet is a simple view of what is happening. You can use what ever %'s you like.
You can also take the view I have no idea what I am talking about and I will accept that as well.

Maybe someone could explain the Balbec deal in detail ??
I suppose only time will tell but for now to me it seems to make sense and I have plenty riding on management doing the right thing.

	Portfolio Sold	Return per year	CLH gets paid a nominal 1% fee for collecting	Paid by Balbec	CLH buy new portfolios with a 10% return	Return per year
	$50,000,000	7%		$25,000,000		10%
YR1	$50,000,000		2%	Used to buy	$200,000,000
		$3,500,000	$70,000			$20,000,000
YR2	$46,500,000				$180,000,000
		$3,255,000	$65,100			$18,000,000
YR3	$43,245,000				$162,000,000
		$3,027,150	$60,543			$16,200,000
YR4	$39,990,000				$144,000,000
		$2,799,300	$55,986			$14,400,000
YR5	$36,962,850				$127,800,000
		$2,587,400	$51,748			$12,780,000
Collected over 5yrs for Balbec		$15,168,850	CLH Collection Fee	CLH Profit	CLH Collections	$81,380,000
			$303,377	$5,000,000
	Portfolio Put/Call Option to repurchase				Retained by CLH for further collection
Total	$36,962,850				$127,800,000