Subprime Lender PrimaLend’s Creditors Eye Bankruptcy Push

Creditors of PrimaLend, which provides financing to auto dealerships that cater to subprime borrowers, are weighing pushing the firm into bankruptcy after going unpaid for months, and as the industry reels from the recent downfall of Tricolor Holdings.

Holders of the company’s $75 million bond due in 2028 are working with lawyers from White & Case on the situation and potential next steps, according to people with knowledge of the plans. PrimaLend has hired Houlihan Lokey for advice, said the people, who asked not to be named discussing private preparations.