Car-Mart Weighs Sale Through Chapter 11 as $300M Loan Default Looms
CRMT sits 22% above its 52-week low of $0.67 on elevated volume (2.8× avg).
Summary
Bloomberg reports Car-Mart is negotiating with lenders on a potential sale to keep the subprime auto retailer alive, with a court-supervised Chapter 11 or a shareholder vote both on the table. The company already missed a June payment on a $300M Silver Point term loan and has survived since on short-term forbearance, now extended just one week to October 22. It has also weighed emergency funding and asset sales, and some ABS trusts are expected to be carved out of any restructuring. This follows a Q1 loss of $8.28 per share on revenue down 57.3% with going-concern doubt reaffirmed, and a string of waiver extensions through the fall. The October 22 forbearance expiry is the hard deadline — a sale or filing decision has to land around it.
At the time of this announcement, CRMT was trading at $0.82 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $6.8M. The 52-week trading range was $0.67 to $28.70. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Seeking Alpha.