Subprime Auto Dealer America’s Car-Mart Seeks Rescue Financing

Subprime Auto Dealer America’s Car-Mart Seeks Rescue Financing America’s Car-Mart Inc., a used car seller and subprime lender, is working on an eleventh hour capital raise to stave off a potential bankruptcy filing after a cash crunch put the company on the verge of default, according to people familiar with the matter. The company’s banker, Houlihan Lokey Inc., has been reaching out to investors to gauge interest in providing at least $500 million of fresh capital, said one of the people, asking not to be identified discussing a private matter. The new money would be used to help the troubled borrower plug a liquidity gap and repay existing lenders, the people said.