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PrimaLend creditors consider bankruptcy push as payments stall - Bloomberg

Published 17/10/2025, 19:10
PrimaLend creditors consider bankruptcy push as payments stall - Bloomberg

Investing.com -- Creditors of PrimaLend are considering forcing the auto dealership financing company into bankruptcy after months without payments, sources familiar with the situation revealed, according to a report from Bloomberg News.

The company, which provides financing to auto dealerships serving subprime borrowers, faces mounting pressure from bondholders as the industry struggles in the wake of Tricolor Holdings’ recent collapse.

Holders of PrimaLend’s $75 million bond maturing in 2028 have engaged legal representation from White & Case to evaluate their options and potential next steps, according to people with knowledge of the matter who requested anonymity due to the private nature of the discussions.

In response to the financial challenges, PrimaLend has brought in investment bank Houlihan Lokey for financial advice, these same sources confirmed.

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