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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 September 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 November 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

                Unaudited   Consolidated   Statement   of  Net   Assets   in
                Liquidation as of September 30, 1997

                Consolidated  Balance  Sheet  (Going  Concern  Basis)  as of
                December 31, 1996

                Unaudited Consolidated Statement of Changes in Net Assets in
                Liquidation for the Three Months ended September 30, 1997

                Unaudited  Consolidated   Statements  of  Operations  (Going
                Concern  Basis) for the Six Months  Ended June 30,  1997 and
                for the Three and Nine Months ended September 30, 1996

                Unaudited  Consolidated  Statements  of  Cash  Flows  (Going
                Concern  Basis) for the Six Months  Ended June 30,  1997 and
                for the Nine Months ended September 30, 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

UNAUDITED CONSOLIDATED STATEMENT OF NET ASSETS IN LIQUIDATION
(Dollars in thousands)


                                                                   September 30, 1997
                                                                   ------------------
<S>                                                                      <C>
ASSETS

     REAL ESTATE ASSETS ...........................................      $47,935

     CASH AND CASH EQUIVALENTS ....................................       22,267

     RESTRICTED CASH ..............................................        1,500

     ACCOUNTS RECEIVABLE ..........................................           21
                                                                         ------- 

         TOTAL ASSETS .............................................       71,723
                                                                         ------- 

LIABILITIES

     LIQUIDATING DISTRIBUTION PAYABLE .............................       22,500

     MORTGAGE NOTE PAYABLE ........................................        4,855

     ESTIMATED COSTS OF LIQUIDATION ...............................          954

     ACCRUED MANAGEMENT DISTRIBUTION ..............................          561

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

         TOTAL LIABILITIES ........................................       29,170
                                                                         ------- 

COMMITMENTS AND CONTINGENCIES

NET ASSETS IN LIQUIDATION .........................................      $42,553
                                                                         =======

NET ASSETS IN LIQUIDATION IS COMPOSED OF:

     AMOUNT DESIGNATED FOR DIVIDEND DECLARED OCTOBER 16, 1997 .....      $11,500

     REMAINDER ....................................................       31,053
                                                                         ------- 

NET ASSETS IN LIQUIDATION .........................................      $42,553
                                                                         =======
</TABLE>
See notes to unaudited consolidated financial statements
<PAGE>
<TABLE>
<CAPTION>
RESURGENCE PROPERTIES INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET (GOING CONCERN BASIS)
(Dollars in thousands, except per share amounts)


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

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

         Operating real estate properties, net ................          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 .....................................           4,378

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

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

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

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

LIABILITIES AND SHAREHOLDERS' EQUITY

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

COMMITMENTS AND CONTINGENCIES

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

CONSOLIDATED BALANCE SHEET (GOING CONCERN BASIS)
(Dollars in thousands, except per share amounts)
(continued)


                                                                  December 31, 1996
                                                                  -----------------
<S>                                                                   <C>

SHAREHOLDERS' EQUITY:
     Common stock, par value $.01; 50,000,000 shares
     Authorized; 10,000,000 shares issued and outstanding .....             100
     Paid-in-capital ..........................................         101,045
     Accumulated deficit ......................................         (17,745)
                                                                      ---------
         Total  shareholders' equity ..........................          83,400
                                                                      ---------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ....................       $  93,286
                                                                      =========
</TABLE>
See notes to unaudited consolidated financial statements
<PAGE>
<TABLE>
<CAPTION>
RESURGENCE PROPERTIES INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS IN LIQUIDATION
(Dollars in thousands)

                                                                   For the three months
                                                               Ended September 30, 1997
                                                               ------------------------
<S>                                                                    <C>

Shareholders' equity, July 1, 1997 (going concern basis) .......       $ 63,224

Liquidation basis adjustments:

     Adjust assets and liabilities to fair value ...............          3,490

     Accrued estimated costs of liquidation ....................         (1,100)

     Accrued management distribution ...........................           (561)
                                                                       --------
Net assets in liquidation July 1, 1997 .........................         65,053

Dividend Declared ..............................................        (22,500)

Net changes in net assets in liquidation .......................           --
                                                                       --------

Net assets in liquidation, September 30, 1997 ..................       $ 42,553
                                                                       ========

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

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

                                                     For the six months   For the three months    For the nine months
                                                        ended June 30,     ended September 30,     ended September 30,
                                                             1997                  1996                   1996
                                                             ----                  ----                   ----
<S>                                                        <C>                   <C>                    <C> 
REVENUES:
     Minimum rents .........................               $ 4,548               $ 3,432                $11,046
     Recoveries from tenants ...............                   819                   704                  2,156
     Mortgage loan interest ................                  --                       6                  4,560
     Investment income .....................                   280                   361                    672
     Net gain (loss) from asset dispositions                 3,547                  (172)                   791
     Other .................................                   236                 1,048                  1,216
                                                           -------               -------                -------
         Total revenues ....................                 9,430                 5,379                 20,441
                                                           -------               -------                -------

EXPENSES:
     Property operations ...................                 2,378                 1,818                  5,343
     Interest expense ......................                   233                   702                  2,821
     Non-income producing assets ...........                    98                   240                    921
     Management fees .......................                   817                   512                  1,537
     General and administrative ............                   332                   124                    470
     Depreciation and amortization .........                   734                   776                  2,329
     Write-downs for impairment of value ...                  --                     740                  2,449
                                                           -------               -------                -------
         Total expenses ....................                 4,592                 4,912                 15,870
                                                           -------               -------                -------

INCOME BEFORE INCOME TAXES AND
     EXTRAORDINARY GAIN ....................                 4,838                   467                  4,571

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

INCOME BEFORE EXTRAORDINARY GAIN ...........                 4,838                   467                  4,571

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

NET INCOME .................................               $ 4,838               $   467                $ 4,731
                                                           =======               =======                =======

INCOME PER COMMON SHARE (10,000,000 shares
outstanding):
     Income Before Extraordinary Gain ......               $  0.48               $  0.05                $  0.46
     Extraordinary Gain ....................                  --                    --                     0.02
                                                           -------               -------                -------

NET INCOME .................................               $  0.48               $  0.05                $  0.48
                                                           =======               =======                =======
</TABLE>
See notes to unaudited consolidated financial statements
<PAGE>
<TABLE>
<CAPTION>
RESURGENCE PROPERTIES INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (GOING CONCERN BASIS)
(Dollars in thousands)
                                                                      For the Six Months      For the Nine Months
                                                                         ended June 30,       ended September 30,
                                                                             1997                    1996
                                                                           --------                --------
<S>                                                                        <C>                     <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income .......................................................         $  4,838                $  4,731
Adjustments to reconcile net income (loss) to net cash provided by
   Operating activities:
     Depreciation and amortization:
         Operating real estate properties ........................              607                   1,999
         Other assets ............................................              127                     330
     Net gain from asset dispositions ............................           (3,547)                   (791)
     Extraordinary gain ..........................................             --                      (160)
     Write-down for impairment of value ..........................             --                     2,449
     Straight-line adjustment for stepped rentals ................              109                      37
     Net changes in operating assets and liabilities .............             (448)                 (3,858)
                                                                           --------                --------

     Net cash provided by operating activities ...................            1,686                   4,737
                                                                           --------                --------
CASH FLOWS FROM INVESTING ACTIVITIES:
     Net proceeds from sales of assets ...........................           34,555                  25,934
     Net collections on mortgage loans ...........................              299                  14,050
     Improvements to operating properties ........................             (574)                 (1,440)
     Acquisitions ................................................             --                      (800)
                                                                           --------                --------

         Net cash provided by investing activities ...............           34,280                  37,744
                                                                           --------                --------
CASH FLOWS FROM FINANCING ACTIVITIES:
     Common stock dividends ......................................          (25,000)
     Senior debt repayments, net .................................           (2,490)                (25,939)
     Mortgage loan repayments ....................................             (289)                 (2,701)
     Preferred stock dividends ...................................              (14)                    (21)
     Purchase of interest in senior debt .........................             --                    (7,920)
                                                                           --------                --------

         Net cash used for financing activities ..................          (27,793)                (36,581)
                                                                           --------                --------

NET INCREASE IN CASH AND CASH EQUIVALENTS ........................            8,173                   5,900
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD .................            4,378                   8,818
                                                                           --------                --------

CASH AND CASH EQUIVALENTS AT END OF PERIOD .......................         $ 12,551                $ 14,718
                                                                           ========                ========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

     Cash paid for interest ......................................         $    233                $  2,924
                                                                           ========                ========
</TABLE>
See notes to unaudited consolidated financial statements
<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").

         On April 24, 1997,  the Board of Directors  approved a plan of complete
         liquidation  and  dissolution  of the Company  (the  "Plan")  which was
         approved by a majority vote of the  shareholders on September 26, 1997.
         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.  As a result  of the  adoption  of the Plan,  the  Company
         adopted the  liquidation  basis of accounting  effective  July 1, 1997,
         whereby assets are valued at their estimated net realizable  values and
         liabilities  are  stated at their  estimated  settlement  amounts.  The
         valuation  of  assets  and  liabilities  requires  many  estimates  and
         assumptions by management and there are  substantial  uncertainties  in
         carrying out the  provisions of the Plan.  The amount and timing of any
         liquidating  distributions  will  depend  upon  a  variety  of  factors
         including, but not limited to, the actual proceeds from the sale of any
         of  the  Company's  assets,  the  ultimate  settlement  amounts  of the
         Company's  liabilities  and  obligations,   actual  costs  incurred  in
         connection  with carrying out the Plan,  including  management fees and
         administrative  costs during the liquidation  period, and the timing of
         the liquidation and dissolution. Accruals totaling approximately $1,100
         have been recorded as of July 1, 1997 for the estimated future costs of
         liquidating the Company which include, but are not limited to, costs of
         disposing   of  the   Company's   remaining   assets  and  general  and
         administrative costs through the estimated conclusion of liquidation.

         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 and  Schedule  14A (Proxy
         Statement) filed on August 25, 1997.

         The  interim  financial  information  contained  herein  is  unaudited;
         however,  in the opinion of management,  all adjustments  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.
<PAGE>
 B.       RESTRICTED CASH

         The  Company  believes  that in  addition  to the  costs  and  expenses
         associated with  facilitating  the plan, it is necessary to set aside a
         Contingency  Reserve of  approximately  $1,500.  No liability  has been
         accrued for such contingencies.  Following the payment, satisfaction or
         other  resolution  of such  contingencies,  the Plan  provides that any
         amounts  remaining in the  Contingency  Reserve shall be distributed to
         the Company's stockholders.

C.       REAL ESTATE ASSETS

         Real estate assets have been  recorded at the estimated net  realizable
         values in liquidation.  No independent appraisals have been obtained on
         these assets.  The estimated net realizable values have been determined
         based on actual  sales  subsequent  to the balance  sheet date,  signed
         contracts,  contract  negotiations,  internal  analysis,  inquiries  or
         offers from prospective  purchasers,  inquiries of market professionals
         and  expected   selling  costs  and  operating   results   through  the
         anticipated disposal date.

D.       ASSET SALES

        For the quarter ended September 30, 1997, the Company sold Stuart Square
        and Riverwood Plaza for net proceeds of approximately $7,164 and $3,645,
        respectively.

E.       LIQUIDATING DISTRIBUTION PAYABLE

         On  September  26,  1997 the  Board of  Directors  declared  the  first
         liquidating  dividend  of $2.25  per share to  Common  shareholders  of
         record as of October 7, 1997.  This  dividend  was paid on October  16,
         1997.

F.       MORTGAGE NOTE PAYABLE

         In August 1997,  the Company and the holder of the $4,855  non-recourse
         mortgage  collateralized  by the Cross Creek Business  Center agreed to
         extend the maturity date to September 1, 1998.

G.       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
         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.

H.       ACCRUED MANAGEMENT DISTRIBUTION

         Pursuant to the approved plan of  liquidation,  the Management  Options
         were   exchanged   for   Management   Distributions.   The   Management
         Distributions  are  payable in the amount  equal to ten  percent of all
<PAGE>
         distributions  made to  stockholders  of the Company in excess of $8.50
         per share  (inclusive of the $2.50 per share dividend paid on April 14,
         1997).

I.       SUBSEQUENT EVENTS

         During  October  1997 the Company sold  Southern  Plaza and Home Center
         Village  for  net   proceeds  of   approximately   $4,390  and  $8,173,
         respectively.  On October 16, 1997 the Board of Directors  declared the
         second  in a series  of  liquidating  dividends  of $1.15  per share to
         Common  shareholders  of record  as of  October  27,  1997  payable  on
         November 6, 1997.
<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 September 30, 1997.

Plan of Liquidation

          On April 24, 1997, the Board of Directors  approved a plan of complete
liquidation  and dissolution of the Company (the "Plan") which was approved by a
majority vote of the shareholders on September 26, 1997. 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
amount and timing of any liquidating distributions will depend upon a variety of
factors including,  but not limited to, the actual proceeds from the sale of any
of the  Company's  assets,  the  ultimate  settlement  amounts of the  Company's
liabilities and  obligations,  actual costs incurred in connection with carrying
out the Plan,  including  management  fees and  administrative  costs during the
liquidation period, and the timing of the liquidation and dissolution.  Accruals
totaling approximately  $1,100,000 have been recorded as of July 1, 1997 for the
estimated  future costs of liquidating  the Company which  include,  but are not
limited to, costs of disposing of the Company's remaining assets and general and
administrative  costs  through the  estimated  conclusion  of  liquidation.  The
Company  believes  that in addition to the costs and  expenses  associated  with
facilitating the plan, it is necessary to set aside a Contingency Reserve in the
amount of  approximately  $1,500,000.  No  liability  has been  accrued for such
contingencies.  Following the payment,  satisfaction or other resolution of such
contingencies,  the Plan provides that any amounts  remaining in the Contingency
Reserve shall be distributed to the Company's stockholders.

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.

          During the quarter  ended  September  30, 1997 the Company sold Stuart
Square and  Riverwood  Plaza for net proceeds of  approximately  $7,164,000  and
$3,645,000,  respectively,  and during  October 1997 the Company  sold  Southern
Plaza and Home Center Village for net proceeds of  approximately  $4,390,000 and
$8,173,000, respectively.

Liquidity and Capital Resources

         The  Company's  primary  objectives  are to liquidate its assets in the
shortest time period possible while realizing the maximum values for such assets
and reduction of operating costs. Although the Company considers its assumptions
and estimates as to the values and timing of such liquidations to be reasonable,
the period of time to liquidate the assets and  distribute  the proceeds of such
assets  is  subject  to   significant   business,   economic   and   competitive
uncertainties and contingencies, many of which are beyond the Company's control.
<PAGE>
         Cash  available  for  distributions,  defined  as  total  cash and cash
equivalents less restricted cash, was approximately $22,267,000 at September 30,
1997,  all of which was  designated  for the $2.25  per share  dividend  paid on
October 16,  1997.  During  October  1997,  the Company  received  approximately
$12,563,000 in connection with the sale of two operating  properties  which will
be  available  to fund the $1.15 per share  dividend  to be paid on  November 6,
1997.

         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. On October 16, 1997 the Company paid the first
in a series of liquidating distributions of $2.25 per Common Share ($22,500,000)
to  shareholders  of record as of October 7, 1997 and on  October  16,  1997 the
Board of Directors declared the second in a series of liquidating  distributions
of $1.15  per share to  shareholders  of record as of  October  27,  1997.  This
dividend will be paid on November 6, 1997.  After payment of this dividend total
distributions paid to shareholders in 1997 will be $5.90 per share and remaining
net assets in liquidation will be approximately  $3.17 per share. Ten percent of
all  distributions  to shareholders in excess of $8.50 per share will be paid to
Management of the Company.


<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 September 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: November 6, 1997               By: /s/ Joseph M. Jacobs
                                         ---------------------
                                         Joseph M. Jacobs
                                         Chief Executive Officer and President
                                         (Duly Authorized Officer)




Date: November 6, 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)