Consumer lending firm, CURO Group Holdings Corp., has voluntarily filed for Chapter 11 bankruptcy protection in Texas, as announced on Monday. The Chicago-based company has also revealed plans to enter a Restructuring Support Agreement aimed at reducing its debt by approximately $1 billion. This move is projected to save the company about $75 million annually in cash interest, thereby creating room for long-term investments and growth.
Despite these changes, CURO assures that its operations in the U.S. and Canada will continue as usual and will not affect constituent loan agreements. The company expects to complete the restructuring process within a four-month timeframe.
CURO also informed that it has secured a commitment for up to $70 million in debtor-in-possession financing, provided by certain pre-existing stakeholders. This financial backing is set to protect and sustain the business's routine operations.
As for the intentions behind the move, Doug Clark, CEO of CURO, remarks, "Implementing this restructuring through a court-supervised process is the most efficient path to facilitate necessary changes to our capital structure. These adjustments will enable us to continue our growth responsibly and fortify the company's foundation."
In the stock market, the current value of CURO's shares is incrementally growing by 1.65%, standing at $0.092 in the OTC market.
