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PrimaLend Capital Partners files for bankruptcy amid debt struggles

Published 22/10/2025, 13:38
PrimaLend Capital Partners files for bankruptcy amid debt struggles

Investing.com -- PrimaLend Capital Partners has filed for bankruptcy after months of negotiations with creditors following missed interest payments on its debt.

The company, which provides financing to auto dealerships serving subprime borrowers, listed estimated assets and liabilities each below $500 million in court documents filed in the Northern District of Texas.

PrimaLend announced in a press release that it plans to pursue a sale of the business through bankruptcy court while continuing to fund and service loans to its borrowers. The company specializes in financing "buy here, pay here" auto dealerships that cater to low-income customers.

"No debt is being called due or accelerated as a result of this process," said Mark Jensen, PrimaLund’s chief executive officer. "We deeply value our dealer-borrower relationships and look forward to continuing to serve the buy-here-pay-here industry as we move forward."

The company has secured a commitment for bankruptcy financing from existing lenders to support its operations during the Chapter 11 process.

Bloomberg News first reported on the PrimaLend bankruptcy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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