Tag: Subprime lending

BusinessFinance

PrimaLend Creditors Consider Bankruptcy Proceedings Amid Subprime Auto Financing Crisis

Creditors of subprime auto lender PrimaLend are reportedly preparing to push the company into bankruptcy proceedings after months of missed payments. The potential action comes as the subprime lending sector faces renewed pressure following Tricolor Holdings’ recent collapse.

Creditors Mobilize Legal Resources

PrimaLend, a specialized lender providing financing to auto dealerships serving subprime borrowers, faces potential bankruptcy proceedings as frustrated creditors consider legal action after going unpaid for several months, according to reports. Sources indicate that holders of the company’s $75 million bond due in 2028 have begun working with attorneys from White & Case to evaluate their options, including potentially forcing the firm into bankruptcy protection.

by Darren Holt
EconomyPolicy

IMF Chief Warns of Growing Threats in Unregulated Lending Sector

The International Monetary Fund’s managing director has voiced serious concerns about the rapid expansion of non-bank financial institutions. Recent collapses in the private credit market have heightened regulatory worries about this growing sector.

Global Financial Leader Sounds Alarm on Shadow Banking Risks

The head of the International Monetary Fund has revealed that concerns about mounting risks in non-bank lending markets are causing sleepless nights, according to reports from the IMF’s annual meeting in Washington DC. Kristalina Georgieva specifically pointed to the recent collapse of subprime auto lender Tricolor and car parts supplier First Brands as examples of why regulators need to increase their focus on this sector.

by Carter Wells