America’s Car-Mart Discusses Potential Sale as Credit Relief Nears End

America’s Car-Mart, Inc. is negotiating with lenders over a potential sale as the used-car retailer and subprime auto lender faces a deadline on temporary credit relief. The discussions are intended to keep the company operating amid debt and liquidity pressures.

Lenders agreed on Oct. 14 to extend waivers for certain defaults and temporary relief from minimum liquidity and collateral-coverage requirements through Oct. 22. The company has experienced, or expects to experience, defaults involving financial covenants and reporting obligations.

A special committee is reviewing financing, recapitalization and restructuring, as well as mergers and acquisitions and other transactions. Discussions with lenders and other parties were continuing on Oct. 15. No decision had been made as of Oct. 20.