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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 10-Q

[ X ]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
          THE SECURITIES AND EXCHANGE ACT OF 1934

                 For the quarterly period ended June 30, 1997

                        Commission file number: 0-24740


                           RESURGENCE PROPERTIES INC.

             (Exact name of registrant as specified in its charter)



           MARYLAND                                              13-3757163
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)


                           c/o Wexford Management LLC
                   411 West Putnam Avenue, Greenwich, CT 06830
                    (Address of principal executive offices)

                                 (203) 862-7000
              (Registrant's telephone number, including area code)

                                      None
              (Former name, former address and former fiscal year,
                          if changed since last report)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                          Yes  [ X ]      No [   ]


Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date:

As of August 1, 1997,  there were 10,000,000  shares of Common Stock,  $0.01 par
value, outstanding.
<PAGE>

                           RESURGENCE PROPERTIES INC.

                                    FORM 10-Q

                                TABLE OF CONTENTS


PART I - FINANCIAL INFORMATION                                              

Item 1.  Financial Statements

               Consolidated Balance Sheets as of June 30, 1997             
               and December 31, 1996

               Unaudited Consolidated Statements of Operations for the     
               Three Months Ended June 30, 1997 and 1996 and for the Six
               Months ended June 30, 1997 and 1996

               Unaudited Consolidated Statement of Shareholders'           
               Equity for the Six Months Ended June 30, 1997

               Unaudited Consolidated Statements of Cash Flows for the     
               Six Months Ended June 30, 1997 and 1996

               Notes to Unaudited Consolidated Financial Statements        

Item 2.  Management's Discussion and Analysis of Financial Condition       
         and Results of Operations


PART II - OTHER INFORMATION


Item 6.  Exhibits and Reports on Form 8-K


SIGNATURES                                                                 
<PAGE>
<TABLE>
<CAPTION>
RESURGENCE PROPERTIES INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share and per share amounts)

                                                               June 30,     December 31,
                                                                 1997           1996
                                                              ---------      ---------
<S>                                                           <C>            <C>
ASSETS

OPERATING REAL ESTATE PROPERTIES:
     Land ...............................................     $   7,385      $   7,841
     Buildings and improvements .........................        30,636         32,557
                                                              ---------      ---------
                                                                 38,021         40,398
     Accumulated depreciation and amortization ..........        (3,256)        (2,893)
                                                              ---------      ---------

         Operating real estate properties, net ..........        34,765         37,505


MORTGAGE LOANS ON REAL ESTATE:
     Nonearning .........................................          --            3,228
     Allowance for possible losses ......................          --           (3,198)
                                                              ---------      ---------
     Mortgage loans on real estate, net .................          --               30

CASH AND CASH EQUIVALENTS ...............................        12,551          4,378

ACCOUNTS RECEIVABLE (net of allowance
     for doubtful accounts of $111 and $244) ............           724          1,054

ASSETS HELD FOR SALE ....................................        21,215         49,387

OTHER ASSETS ............................................           503            932
                                                              ---------      ---------

TOTAL ASSETS ............................................     $  69,758      $  93,286
                                                              =========      =========

LIABILITIES AND SHAREHOLDERS' EQUITY


LIABILITIES:
     Senior debt ........................................     $    --        $   2,490
     Mortgage notes payable .............................         5,005          5,294
     Real estate taxes ..................................           658            482
     Other liabilities ..................................           571          1,320
                                                              ---------      ---------
         Total liabilities ..............................         6,234          9,586


COMMITMENTS AND CONTINGENCIES

REDEEMABLE PREFERRED STOCK ..............................           300            300
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
RESURGENCE PROPERTIES INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share and per share amounts)

                                                               June 30,     December 31,
                                                                 1997           1996
                                                              ---------      ---------
<S>                                                           <C>            <C>
SHAREHOLDERS' EQUITY:
     Common stock, par value $.01; 50,000,000 shares
     Authorized; 10,000,000 shares issued and outstanding           100            100
     Paid in capital ....................................        76,045        101,045
     Accumulated deficit ................................       (12,921)       (17,745)
                                                              ---------      ---------
         Total  shareholders' equity ....................        63,224         83,400
                                                              ---------      ---------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ..............     $  69,758      $  93,286
                                                              =========      =========


            See notes to unaudited consolidated financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
RESURGENCE PROPERTIES INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share and per share amounts)

                                                 For the three months     For the six months
                                                    ended June 30,           ended June 30,
                                                 --------------------     ------------------ 
                                                   1997        1996         1997        1996
                                                 -------     -------      -------     -------
<S>                                              <C>         <C>          <C>         <C>
REVENUES:
     Minimum rents .........................     $ 1,846     $ 3,625      $ 4,548     $ 7,614
     Recoveries from tenants ...............         240         606          819       1,452
     Mortgage loan interest ................        --         4,109         --         4,554
     Investment income .....................         157         216          280         311
     Net gain (loss) from asset dispositions         251         (12)       3,547         963
     Other .................................         156          82          236         168
                                                 -------     -------      -------     -------
         Total revenues ....................       2,650       8,626        9,430      15,062
                                                 -------     -------      -------     -------


EXPENSES:
     Property operations ...................         983       1,621        2,378       3,525
     Interest expense ......................         124       1,007          233       2,119
     Non-income producing assets ...........          35         299           98         681
     Management fees .......................         369         513          817       1,025
     General and administrative ............         165         160          332         346
     Depreciation and amortization .........         335         776          734       1,553
     Write-down for impairment of value ....        --          --           --         1,709
                                                 -------     -------      -------     -------
         Total expenses ....................       2,011       4,376        4,592      10,958
                                                 -------     -------      -------     -------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
RESURGENCE PROPERTIES INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share and per share amounts)
(continued)

                                                 For the three months     For the six months
                                                    ended June 30,           ended June 30,
                                                 --------------------     ------------------ 
                                                   1997        1996         1997        1996
                                                 -------     -------      -------     -------
<S>                                              <C>         <C>          <C>         <C>
INCOME BEFORE INCOME TAXES AND
     EXTRAORDINARY GAIN ....................         639       4,250        4,838       4,104
     Income Taxes ..........................        --          --           --          --
                                                 -------     -------      -------     -------

INCOME BEFORE EXTRAORDINARY
     GAIN ..................................         639       4,250        4,838       4,104

     Extraordinary Gain ....................        --            46         --           160
                                                 -------     -------      -------     -------

NET INCOME .................................     $   639     $ 4,296      $ 4,838     $ 4,264
                                                 =======     =======      =======     =======

INCOME PER COMMON SHARE (10,000,000 shares
outstanding):

INCOME BEFORE EXTRAORDINARY GAIN ...........     $  0.06     $  0.43      $  0.48     $  0.41

EXTRAORDINARY GAIN .........................        --          --           --          0.02
                                                 -------     -------      -------     -------

NET INCOME .................................     $  0.06     $  0.43      $  0.48     $  0.43
                                                 =======     =======      =======     =======

            See notes to unaudited consolidated financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
RESURGENCE PROPERTIES INC. AND SUBSIDIARIES

UNAUDITED  CONSOLIDATED  STATEMENT  OF  SHAREHOLDERS'  EQUITY
For the Six Months Ended June 30, 1997
(Dollars in thousands, except share amounts)



                                     COMMON STOCK             PAID  IN       ACCUMULATED
                                 SHARES         AMOUNT         CAPITAL          DEFICIT          TOTAL 
                               ----------     ----------     ----------      ----------      ----------
<S>                            <C>            <C>            <C>             <C>             <C>
Balance, December 31, 1996     10,000,000     $      100     $  101,045      $  (17,745)     $   83,400

Common stock dividends ...           --             --          (25,000)           --           (25,000)

Preferred stock dividends            --             --             --               (14)            (14)

Net income ...............           --             --             --             4,838           4,838
                               ----------     ----------     ----------      ----------      ----------

Balance, June 30, 1997 ...     10,000,000     $      100     $   76,045      $  (12,921)     $   63,224
                               ==========     ==========     ==========      ==========      ==========





                        See notes to unaudited consolidated financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
RESURGENCE PROPERTIES INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)

                                                                 For the Six Months
                                                                    ended June 30,
                                                                ----------------------
                                                                   1997          1996
                                                                --------      --------
<S>                                                             <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ................................................     $  4,838      $  4,264
Adjustments to reconcile net income to net cash provided by
     operating activities:
     Depreciation and amortization:
         Operating real estate properties .................          607         1,392
         Other assets .....................................          127           161
Net gain from asset dispositions ..........................       (3,547)         (963)
Extraordinary gain ........................................         --            (160)
Write-down for impairment of value ........................         --           1,709
Straight-line adjustment for stepped rentals ..............          109            26
Net changes in operating assets and liabilities ...........         (448)         (919)
                                                                --------      --------

     Net cash provided by operating activities ............        1,686         5,510
                                                                --------      --------


CASH FLOWS FROM INVESTING ACTIVITIES:
     Net proceeds from sales of assets ....................       34,555        24,511
     Net collections on mortgage loans ....................          299        14,050
     Improvements to operating properties .................         (574)       (1,199)
     Acquisitions .........................................         --            (800)
                                                                --------      --------

         Net cash provided by investing activities ........       34,280        36,562
                                                                --------      --------


CASH FLOWS FROM FINANCING ACTIVITIES:
     Common stock dividends ...............................      (25,000)         --
     Senior debt repayments, net ..........................       (2,490)      (11,420)
     Mortgage loan repayments .............................         (289)       (2,565)
     Preferred stock dividends ............................          (14)          (14)
     Purchase of interest in senior debt ..................         --          (7,912)
                                                                --------      --------

         Net cash used for financing activities ...........      (27,793)      (21,911)
                                                                --------      --------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
RESURGENCE PROPERTIES INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands) (continued)

                                                                 For the Six Months
                                                                    ended June 30,
                                                                ----------------------
                                                                   1997          1996
                                                                --------      --------
<S>                                                             <C>           <C>

NET INCREASE IN CASH AND CASH EQUIVALENTS .................        8,173        20,161

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD ..........        4,378         8,818
                                                                --------      --------

CASH AND CASH EQUIVALENTS AT END OF PERIOD ................     $ 12,551      $ 28,979
                                                                ========      ========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

     Cash paid for interest ...............................     $    233      $  2,167
                                                                ========      ========

            See notes to unaudited consolidated financial statements
</TABLE>
<PAGE>
RESURGENCE PROPERTIES INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, except per share amounts)

A.       ORGANIZATION AND ACCOUNTING POLICIES

         Resurgence  Properties  Inc. and its  subsidiaries  (the "Company") are
         engaged  in  diversified  real  estate  activities.   The  Company  was
         incorporated  on March 25,  1994 and began its  operations  on April 7,
         1994,  when the  Company  succeeded  to most of the  assets of  Liberte
         Investors  ("Liberte") upon  consummation of Liberte's  bankruptcy plan
         ("The Plan of Reorganization"). The Company is managed and administered
         by Wexford Management LLC ("Wexford").

         The accompanying financial statements,  notes and discussions should be
         read in conjunction with the consolidated financial statements, related
         notes and discussions  contained in the Company's annual report on Form
         10-K for the year ended December 31, 1996.

         The  interim  financial  information  contained  herein  is  unaudited;
         however, in the opinion of management, all adjustments (consisting only
         of normal recurring adjustments,  other than write-downs for impairment
         of  value)  necessary  for the  fair  presentation  of  such  financial
         information have been included.

         The December 31, 1996 year-end  balance sheet data presented herein was
         derived from  audited  financial  statements,  but does not include all
         disclosures required by generally accepted accounting principles.

         Long-lived  assets are not reclassified to assets held for sale until a
         valid,  binding sales contract is executed.  No such  reclassifications
         were made for the three months ended June 30, 1997.

         The results for the interim  period are not  necessarily  indicative of
         the results to be expected for the year ending December 31, 1997.

         The Company  has  approximately  $15.3  million of net  operating  loss
         carry-forwards  ("NOL") available for U.S. income tax purposes expiring
         in years through 2011.  The Company has provided a valuation  allowance
         to offset the full amount of the net deferred  tax assets  arising from
         book and tax differences including those from the NOL's.

         The Financial  Accounting Standards Board issued Statement of Financial
         Accounting  Standards No. 128, "Earnings per Share" in February,  1997.
         This pronouncement  establishes  standards for computing and presenting
         earnings per share,  and is effective for the  Company's  1997 year-end
         financial statements. The Company's management has determined that this
         standard  will  have  no  impact  on  the  Company's   computation   or
         presentation of net income per common share.

B.       ASSETS HELD FOR SALE

         For the quarter  ended June 30, 1997,  the Company  sold  Ramser-Newton
         Avenue,  Executive  Airport,  Southridge  Plaza,  Greenway  Village and
         various land assets for net proceeds of approximately  $1,400,  $2,945,
         $2,332,  $2,295 and $162,  respectively.  These sales resulted in a net
         gain of approximately  $251, after deducting closing costs. The Company
         expects that the sales contracts on substantially  all of the remaining
         assets held for sale will close by December 31, 1997.
<PAGE>
C.       PLAN OF LIQUIDATION

         On April 29, 1997,  the Board of Directors  approved a plan of complete
         liquidation  and dissolution of the Company (the "Plan") for submission
         to shareholders for their approval at the annual  shareholders  meeting
         which is  expected  to be held  during the third  quarter of 1997.  The
         effective  date of the  Plan  will be upon  the  affirmative  vote of a
         majority of the Company's  shareholders.  Among the key features of the
         Plan are:  (1) the  cessation of all  business  activities,  other than
         those in furtherance of the Plan; (2) the sale or disposition of all of
         the  Company's   assets;   (3)  the  satisfaction  of  all  outstanding
         liabilities;   (4)  the  payment  of   liquidating   distributions   to
         shareholders  in complete  redemption of the Common Stock;  and (5) the
         authorization of the filing of Articles of Dissolution.

D.       MANAGEMENT AGREEMENT

         The Board of  Directors  and Wexford have agreed to an extension of the
         management  agreement  with Wexford,  which was due to expire on May 4,
         1997,  under a reduced fee arrangement  through  December 31, 1997 (the
         "Extended  Management  Agreement") and to replace all of the Management
         Options  issued to Wexford  with a  compensation  package  designed  to
         provide the same  economic  benefits  as the  Management  Options.  The
         replacement of the Management  Options is contingent  upon  shareholder
         approval of the Plan. The Extended Management  Agreement provides for a
         fee payable to Wexford of $1,152,125  for the year ending  December 31,
         1997 subject to adjustment based on actual expenses.
<PAGE>
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following  section  includes a discussion and analysis of the results of the
Company for the quarter ended June 30, 1997.

Plan of Liquidation

          On April 29, 1997, the Board of Directors  approved a plan of complete
liquidation  and  dissolution  of the Company (the "Plan") for submission to its
shareholders for their approval at the annual  shareholders  meeting expected to
be held during the third quarter of 1997. The effective date of the Plan will be
upon the affirmative vote of a majority of the Company's shareholders. Among the
key  features of the Plan are: (1) the  cessation  of all  business  activities,
other than those in  furtherance of the Plan; (2) the sale or disposition of all
of the Company's  assets;  (3) the satisfaction of all outstanding  liabilities;
(4) the  payment  of  liquidating  distributions  to  shareholders  in  complete
redemption  of the  Common  Stock;  and (5) the  authorization  of the filing of
Articles of Dissolution.

Results of Operations - General

          The Company has  disposed of a  significant  portion of its  portfolio
acquired  under the plan of  reorganization  of  Liberte  Investors.  The future
performance  of the Company's  portfolio of assets will be subject to prevailing
economic conditions and to financial,  business and other factors, including the
future  performance of the real estate market,  the availability of financing to
prospective asset  purchasers,  the timing of the liquidation of the Company and
to other factors beyond the Company's control. For these reasons, the results of
the Company's operations from period to period may not be comparable.

Six Months  Ended June 30, 1997  Compared To Six Months  Ended June 30, 1996 and
Three Months Ended June 30, 1997 Compared To Three Months Ended June 30, 1996

              For the six months  ended June 30, 1997,  revenues  related to the
operations of the Company's  operating  properties  decreased to $5,367,000 from
$9,066,000  for the same period in the prior year,  primarily as a result of the
disposition  of ten operating  properties  (two during the period from July 1996
through December 1996, four during the first quarter of 1997 and four during the
second  quarter  of 1997).  For the same  period,  property  operating  expenses
correspondingly  decreased  to  $2,378,000  from  $3,525,000  in the prior year,
primarily as a result of the disposition of the ten properties. Depreciation and
amortization  for the six  months  ended  June 30,  1997 and  1996  amounted  to
$734,000  and  $1,553,000,   respectively.  The  decrease  in  depreciation  and
amortization is a result of the  disposition of the ten operating  properties as
mentioned above.

              For the three months ended June 30, 1997,  revenues related to the
operations of the Company's  operating  properties  decreased to $2,086,000 from
$4,231,000  for the same period in the prior year,  primarily as a result of the
disposition of the ten operating properties as noted above. For the same period,
property   operating  expenses   correspondingly   decreased  to  $983,000  from
$1,621,000 in the prior year,  primarily as a result of the  disposition  of the
ten properties.  Depreciation  and  amortization for the three months ended June
30, 1997 and 1996 amounted to $335,000 and $776,000,  respectively. The decrease
in  depreciation  and  amortization  is a result of the  disposition  of the ten
operating properties as mentioned above.
<PAGE>
         Mortgage loan  interest  decreased to zero for the six and three months
ended June 30, 1997 from  $4,554,000  and $4,109,000 for the same periods in the
prior year,  primarily  as a result of the sale and/or  repayment  of all of the
mortgage  loans.  The results for the six and three  months  ended June 30, 1996
include  approximately  $3,864,000 of additional interest income from the payoff
of a pool of mortgage loans.

         Investment  income  decreased  to $280,000 and $157,000 for the six and
three months ended June 30, 1997 from $311,000 and $216,000 for the same periods
in the  prior  year,  primarily  due to a higher  amount of cash  available  for
investment for the six and three months ended June 30, 1996.

         Interest  expense  decreased  to $233,000  and $124,000 for the six and
three months ended June 30, 1997 from  $2,119,000  and  $1,007,000  for the same
periods  in  the  prior  year,  primarily  due to the  repayment  of the  entire
outstanding balance of the Senior Debt in January 1997.

         Expenses  related to non-income  producing  assets decreased to $98,000
and $35,000 for the six and three months  ended June 30, 1997 from  $681,000 and
$299,000 for the same periods in the prior year,  primarily as a result of asset
sales.

         General  and  administrative   expenses,  which  primarily  consist  of
insurance,  consulting,  legal and accounting fees, remained relatively constant
for the six and three months ended June 30, 1997 as compared to the same periods
in the prior year.

         In connection  with the Company's  purchases of interests in the Senior
Debt  during the three  months  ended June 30,  1996,  the  Company  recorded an
extraordinary gain of $46,000.

Capital Expenditures

         Capital  expenditures  for the six  months  ended  June 30,  1997  were
$574,000,  of which approximately  $300,000 related to tenant improvements.  The
balance of the expenditures were for normal property improvements. The source of
funds for such  capital  expenditures  was from cash  generated  from  rents and
proceeds from the sale of assets.

Liquidity and Capital Resources

         For the six  months  ended  June 30,  1997,  cash and cash  equivalents
increased  by  $8,173,000.  $1,686,000  was  provided by  operating  activities,
$34,280,000  was provided by investing  activities and  $27,793,000 was used for
financing activities.  Cash provided by investing activities consisted primarily
of net proceeds from asset sales of $34,555,000  and net collections on mortgage
loans of $299,000,  partially offset by improvements to the operating properties
of $574,000.  Cash used for financing activities consisted primarily of dividend
payments of  $25,014,000,  net Senior Debt repayments of $2,490,000 and mortgage
repayments of $289,000.

         On April 14,  1997 the  Company  paid a special  dividend  of $2.50 per
Common Share  ($25,000,000)  to shareholders of record as of March 28, 1997. The
source  of funds  for such  dividend  was from  cash  generated  from  rents and
proceeds from the sale of assets.
<PAGE>
         During  the six months  ended June 30,  1997,  the  Company  sold eight
operating  properties and various land assets for net proceeds of  approximately
$34,555,000.  These sales  resulted in a net gain of  approximately  $3,279,000,
after deducting closing costs.

         As of August 1, 1997,  the Company has four assets  under  contract for
sale to various  purchasers,  which are  expected  to result in net  proceeds of
approximately $23 million in the aggregate. All of the assets under contract are
subject to customary  closing  conditions and  substantially all are expected to
close within the next three months.
<PAGE>


                           PART II - OTHER INFORMATION 


Item 6.             Exhibits and Reports on Form 8-K:

                    (a)   Exhibits:  None


                    (b)   Reports on Form 8-K:  the Company filed a report
                          on Form 8-K dated April 30, 1997.
<PAGE>


                                   SIGNATURES


          Pursuant to the  requirements of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                     Resurgence Properties Inc.



Date: August 13, 1997                By: /s/ Joseph M. Jacobs
                                         ---------------------
                                         Joseph M. Jacobs
                                         Chief Executive Officer and President
                                         (Duly Authorized Officer)




Date: August 13, 1997                By: /s/ Jay L. Maymudes
                                         --------------------
                                         Jay L. Maymudes
                                         Chief Financial Officer, Vice President
                                         and Secretary (Principal Financial and
                                         Accounting Officer and Duly Authorized
                                         Officer)