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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 March 31, 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 May 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 March 31, 1997        
                        and December 31, 1996

                        Unaudited Consolidated Statements of Operations for the 
                        Three Months Ended March 31, 1997 and 1996

                        Unaudited Consolidated Statement of Shareholders'       
                        Equity for the Three Months Ended March 31, 1997

                        Unaudited Consolidated Statements of Cash Flows for the 
                        Three Months Ended March 31, 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)

                                                                     March 31,    December 31,
                                                                      1997           1996
                                                                    ---------      ---------
<S>                                                                 <C>            <C>
ASSETS

OPERATING REAL ESTATE PROPERTIES:
      Land ....................................................     $   7,841      $   7,841
      Buildings and improvements ..............................        32,710         32,557
                                                                    ---------      ---------
                                                                       40,551         40,398
      Accumulated depreciation and amortization ...............        (3,199)        (2,893)
                                                                    ---------      ---------

               Operating real estate properties, net ..........        37,352         37,505

MORTGAGE LOANS ON REAL ESTATE:
      Non-earning .............................................          --            3,228

      Allowance for possible losses ...........................          --           (3,198)
                                                                    ---------      ---------

      Mortgage loans on real estate, net ......................          --               30

CASH AND CASH EQUIVALENTS .....................................        28,373          4,378

ACCOUNTS RECEIVABLE (net of allowance
      for doubtful accounts of $111 and $244) .................         1,079          1,054

ASSETS HELD FOR SALE ..........................................        26,872         49,387

OTHER ASSETS ..................................................           652            932
                                                                    ---------      ---------

TOTAL ASSETS ..................................................     $  94,328      $  93,286
                                                                    =========      =========

LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES:
      Dividends payable .......................................     $  25,000      $    --
      Senior debt .............................................          --            2,490
      Mortgage notes payable ..................................         5,151          5,294
      Real estate taxes .......................................           583            482
      Other liabilities .......................................           702          1,320
                                                                    ---------      ---------
               Total liabilities ..............................        31,436          9,586
<PAGE>
<CAPTION>
RESURGENCE PROPERTIES INC. AND SUBSIDIARIES

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

                                                                     March 31,    December 31,
                                                                      1997           1996
                                                                    ---------      ---------
<S>                                                                 <C>            <C>
COMMITMENTS AND CONTINGENCIES

REDEEMABLE PREFERRED STOCK ....................................           300            300

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 .....................................       (13,553)       (17,745)
                                                                    ---------      ---------
               Total  shareholders' equity ....................        62,592         83,400
                                                                    ---------      ---------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ....................     $  94,328      $  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
                                                                        ended March 31,
                                                                      1997        1996
                                                                    -------     -------
<S>                                                                 <C>         <C>
REVENUES:
      Minimum rents ...........................................     $ 2,703     $ 3,989
      Recoveries from tenants .................................         578         846
      Mortgage loan interest ..................................        --           445
      Investment income .......................................         124          95
      Net gain from asset dispositions ........................       3,296         975
      Other ...................................................          80          86
                                                                    -------     -------
               Total revenues .................................       6,781       6,436
                                                                    -------     -------

EXPENSES:
      Property operations .....................................       1,396       1,904
      Interest expense ........................................         109       1,112
      Non-income producing assets .............................          64         382
      Management fees .........................................         448         512
      General and administrative ..............................         167         186
      Depreciation and amortization ...........................         398         777
      Write-downs for impairment of value .....................        --         1,709
                                                                    -------     -------
               Total expenses .................................       2,582       6,582
                                                                    -------     -------

INCOME (LOSS) BEFORE INCOME TAXES AND
       EXTRAORDINARY GAIN .....................................       4,199        (146)

      Income Taxes ............................................        --          --
                                                                    -------     -------

INCOME (LOSS) BEFORE EXTRAORDINARY GAIN .......................       4,199        (146)

      Extraordinary Gain ......................................        --           114
                                                                    -------     -------

NET INCOME (LOSS) .............................................     $ 4,199     $   (32)
                                                                    =======     =======

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

INCOME (LOSS) BEFORE EXTRAORDINARY GAIN .......................     $  0.42     $ (0.01)

EXTRAORDINARY GAIN ............................................        --          0.01
                                                                    -------     -------

NET INCOME ....................................................     $  0.42     $  0.00
                                                                    =======     =======
See notes to unaudited consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
RESURGENCE PROPERTIES INC. AND SUBSIDIARIES

UNAUDITED  CONSOLIDATED  STATEMENT OF SHAREHOLDERS'  EQUITY For the Three Months
Ended March 31, 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            --             --             --                (7)             (7)

Net income ...............                                                        4,199           4,199

Balance, March 31, 1997 ..     10,000,000     $       100    $   76,045      $  (13,553)     $   62,592
                               ==========     ===========    ==========      ==========      ==========


                             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 Three Months
                                                                            ended March 31,
                                                                       ----------------------
                                                                           1997        1996
                                                                       --------      --------
<S>                                                                    <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ................................................     $  4,199      $    (32)
Adjustments to reconcile net income (loss) to net cash provided by
     operating activities:
     Depreciation and amortization:
         Operating real estate properties ........................          306           714
         Other assets ............................................           92            63
     Net gain from asset dispositions ............................       (3,296)         (975)
     Extraordinary gain ..........................................         --            (114)
     Write-down for impairment of value ..........................         --           1,709
     Straight-line adjustment for stepped rentals ................           84           (13)
     Net changes in operating assets and liabilities .............         (730)          (33)
                                                                       --------      --------

         Net cash provided by operating activities ...............          655         1,319
                                                                       --------      --------
CASH FLOWS FROM INVESTING ACTIVITIES:
     Net proceeds from sales of assets ...........................       25,834        16,930
     Net collections on mortgage loans ...........................          299           266
     Improvements to operating properties ........................         (153)         (634)
     Acquisitions ................................................         --            (800)
                                                                       --------      --------

         Net cash provided by investing activities ...............       25,980        15,762
                                                                       --------      --------
CASH FLOWS FROM FINANCING ACTIVITIES:
     Senior debt repayments, net .................................       (2,490)      (10,200)
     Mortgage loan repayments ....................................         (143)       (2,432)
     Preferred stock dividends ...................................           (7)           (7)
     Purchase of interest in senior debt .........................         --          (3,822)
                                                                       --------      --------

         Net cash used for financing activities ..................       (2,640)      (16,461)
                                                                       --------      --------

NET INCREASE IN CASH AND CASH EQUIVALENTS ........................       23,995           620

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

CASH AND CASH EQUIVALENTS AT END OF PERIOD .......................     $ 28,373      $  9,438
                                                                       ========      ========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

     Cash paid for interest ......................................     $    128      $  1,141
                                                                       ========      ========
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.

         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.       MORTGAGE LOANS ON REAL ESTATE

         In February  1997, the Company  entered into a settlement  agreement on
         the Summerhill Del Ray mortgage loan whereby the Company  received $300
         in cash and a $100 note due in June 1997 in  complete  satisfaction  of
         the  mortgage  loan.   The  settlement   resulted  in  a  net  gain  of
         approximately $268.
<PAGE>
C.       ASSETS HELD FOR SALE

         For the quarter  ended  March 31,  1997,  the Company  sold Abco Plaza,
         Bayshore  Club  Apartments,  Riverbend  Shopping  Center,  1025 Vermont
         Avenue and  various  land  assets  for net  proceeds  of  approximately
         $6,539,  $3,843,  $620, $12,495 and $2,337,  respectively.  These sales
         resulted in a net gain of $3,028, after deducting closing costs.

D.       DIVIDENDS PAYABLE

         On March 18, 1997, the Board of Directors  declared a special  dividend
         of $2.50 per Common Share payable on April 14, 1997 to  shareholders of
         record as of March 28, 1997.

E.       SENIOR DEBT

         In January 1997,  the Company  prepaid the  outstanding  balance of its
         Senior Debt, including accrued interest,  obtained lien releases on all
         of  its  collateralized   assets  and  terminated  the  Secured  Credit
         Agreement.  In February  1996,  the Company  purchased a  participating
         interest  in the  Senior  Debt in the  principal  amount of $3,936  for
         $3,822 and recognized an extraordinary gain of $114.

F.       SUBSEQUENT EVENTS

         On April 28, 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.

         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.  A copy  of
         Amendment  No. 2 to the  management  agreement  is filed as an  exhibit
         hereto.
<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 March 31, 1997.

Plan of Liquidation

          On April 28, 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.

Three Months Ended March 31, 1997 Compared To Three Months Ended March 31, 1996

              For the three months ended March 31, 1997, revenues related to the
operations of the Company's  operating  properties  decreased to $3,281,000 from
$4,835,000  for the same period in the prior year,  primarily as a result of the
disposition  of eight  operating  properties  (four during the period from April
1996 through  December 1996 and four in the first quarter of 1997). For the same
period, property operating expenses correspondingly decreased to $1,396,000 from
$1,904,000 in the prior year,  primarily as a result of the  disposition  of the
eight properties. Depreciation and amortization for the three months ended March
31, 1997 and 1996 amounted to $398,000 and $777,000,  respectively. The decrease
in  depreciation  and  amortization  is a result of the disposition of the eight
operating properties as mentioned above.

         Mortgage  loan  interest  decreased  to zero for the three months ended
March 31, 1997 from $445,000 for the same period in the prior year, primarily as
a result of the sale and/or repayment of all of the mortgage loans.

         Investment  income  increased  to $124,000  for the three  months ended
March 31, 1997 from $95,000 for the same period in the prior year, primarily due
to a higher amount of cash  available for  investment for the three months ended
March 31, 1997.

         Interest expense decreased to $109,000 for the three months ended March
31, 1997 from $1,112,000 for the same period in the prior year, primarily due to
the  repayment of the entire  outstanding  balance of the Senior Debt in January
1997.
<PAGE>
         Expenses  related to non-income  producing  assets decreased to $64,000
for the three months  ended March 31, 1997 from  $382,000 for the same period 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, decreased to $167,000 for the
three months ended March 31, 1997 from $186,000 for the same period in the prior
year, primarily due to a decrease in insurance and legal fees.

         In connection  with the Company's  purchases of interests in the Senior
Debt during the three  months  ended  March 31,  1996,  the Company  recorded an
extraordinary gain of $114,000.

Capital Expenditures

         Capital  expenditures  for the three  months  ended March 31, 1997 were
$153,000,  of which approximately  $119,000 related to tenant improvements.  The
balance of the expenditures was 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 three months ended March 31,  1997,  cash and cash  equivalents
increased  by  $23,995,000.  $655,000  was  provided  by  operating  activities,
$25,980,000  was provided by investing  activities  and  $2,640,000 was used for
financing activities.  Cash provided by investing activities consisted primarily
of net proceeds from asset sales of $25,834,000  and net collections on mortgage
loans of $299,000,  partially offset by improvements to the operating properties
of  $153,000.  Cash used for  financing  activities  consisted  primarily of net
Senior Debt repayments of $2,490,000 and mortgage repayments of $143,000.

         In January 1997, the Company repaid the entire  outstanding  balance of
its Senior Debt,  including accrued  interest,  obtained lien releases on all of
its collateralized assets and terminated the Secured Credit Agreement.

         During the quarter  ended March 31, 1997,  the Company sold Abco Plaza,
Bayshore Club Apartments,  Riverbend  Shopping  Center,  1025 Vermont Avenue and
various land assets for net proceeds of  approximately  $6,539,000,  $3,843,000,
$620,000,  $12,495,000 and $2,337,000,  respectively.  These sales resulted in a
net gain of $3,028,000, after deducting closing costs.
<PAGE>
                           PART II - OTHER INFORMATION 


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

                    (a)   Not applicable.

                    Exhibit Number              Description
                    --------------              -----------

                          10.1    Amendment Number 2, dated  May 4, 1997, to the
                                  Management Agreement, dated as of May 4, 1994,
                                  and  as amended by  Amendment  Number 1, dated
                                  March 8, 1995, between  Resurgence  Properties
                                  Inc.,  Resurgence  Properties  Texas, L.P. and
                                  Wexford Management LLC.


                    (b)   None. The Company was not required to file any reports
                          on Form 8-K during the quarter ended March 31, 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: May 14, 1997                   By: /s/ Joseph M. Jacobs
                                         -------------------- 
                                         Joseph M. Jacobs
                                         Chief Executive Officer and President
                                         (Duly Authorized Officer)




Date: May 14, 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)