It has emerged that LendingClub Corp (NYSE:LC) has embarked on a process that could see it sell up to $1.5 billion in consumer debt to an entity called Western Asset Management. But those consumer credits won’t be sold all at once. Instead, Western will commit to acquiring a certain amount of the debts every month until the target amount is reached.

Neither LC nor Western is discussing the debt transaction publicly, but people with insider knowledge say that the talks between the two entities have advanced and a deal could be announced in the coming weeks. However, because the agreement reached so far by the parties in the consumer credit sale is not final, the amount of loans to be purchased could change or the talks may end without a transaction.

Western is a unit of Legg Mason Inc, a money manager. Analysts commenting on the anticipated deal say that a division of Legg Mason would be a great partner to help shore up the reputation of LendingClub.

Internal scandal

LendingClub Corp was earlier this year rocked by a scandal that led to the resignation of its founder and CEO Renaud Laplanche. But the company has been trying to get past those internal problems quickly and to assure investors that it is still a great partner to do business with.

However, shares of LendingClub have not recovered from the shock they suffered following the company’s internal woes. Shares of LendingClub are down more than 58% YTD.

Going public

LendingClub Corp became the first of its peers in the business of matching online borrowers with lenders to go public in late 2014. The company grew rapidly over the years, but it has faced troubles in its public life.

Quarterly earnings

LendingClub Corp is set to release its 2Q2016 results on August 8. In the last quarter, the company generated revenue of $328.98 million, which increased significantly from revenue of $194.51 million in the same period last year. The company posted EPS of $0.01, an improvement from EPS loss of $0.02 in the year-ago quarter.