PrimaLend Capital Partners filed for bankruptcy after months of negotiations with creditors following missed interest payments on its debt, the latest sign of stress in a pocket of the US economy catering to low-income consumers.
The company, which provides financing to “buy here, pay here” auto dealerships focused on subprime borrowers, in a press release said it was pursuing a sale of the business in bankruptcy court and would continue to fund and service loans to its own borrowers. It also said it has received commitments for bankruptcy financing from existing lenders.
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