CCF Seeks $6 Million in Public Stock Offering

CCF Inc., a newly formed Van Nuys company, hopes to raise up to $6 million with an initial public offering of stock.

CCF, headed by accountant Irving I. Gold, said in a filing with the Securities and Exchange Commission that it plans to acquire workers’ compensation receivables--known as money lien certificates, or MLCs--from California doctors. An MLC is generated when a doctor evaluates an injured worker for purposes of workers’ compensation insurance.

The MLC typically is paid by workers’ compensation insurers. But CCF plans to buy a portfolio of MLCs from doctors at a discount of about 40%, then collect payment from the insurers itself. In that way, it is similar to factors, which provide immediate cash to companies by purchasing their receivables--money eventually due the companies--at a discount.

CCF would use proceeds from the offering to buy the MLCs, which totaled about $235 million in California in 1988, the company said. CCF also plans to buy a small Yorba Linda company called Administrative Insurance Technologies Inc. for $649,061. AIT processes claims for CIGNA, a major insurer.

CCF hopes to sell up to 1.17 million shares for $6 each. After deducting expenses and fees, CCF’s net proceeds would be $6 million. The offering is being underwritten by Asset Securities Corp. of North Miami Beach, Fla.