For the fourth time this month, America’s Car-Mart has been given an extension to avoid default on its outstanding debt.
Driving the news: In a filing with the Securities and Exchange Commission Thursday, America’s Car-Mart, a BHPH dealer based in Arkansas, disclosed it has come to terms with Silver Point Finance on an extension until Oct. 1 on its outstanding debt.
Car-Mart secured a $300 million loan in October 2025 from Silver Point.
It was previously given a pair of extensions in June from Silver Point to avoid default before an amendment to terms with a September 4 deadline that has now been extended four times.
Looking for funding: America’s Car-Mart continues to report progress on its search for alternative funding.
A special committee of the company’s board is seeking financing, recapitalization, restructuring, mergers and acquisitions, and other transactions.
Additionally, it reports that discussions remain active with third parties and lenders.
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Ongoing struggles: America’s Car-Mart closed or consolidated 60 locations in the past year, dropping its store count to 94.
According to its first quarter 2027 fiscal year report, the dealer’s inventory decreased to $35.2 million from $54.1 million.
The year-over-year sales for the period dropped by 81.9% to 2,450 units.
Its portfolio is down 21%.
The company’s debt was reduced by nearly 20% in the past year to $623.9 million as of July 31.
Bottom line: America’s Car-Mart has another week to find a solution to meet the terms of its loan, but its leadership continues to stress there’s no guarantee that it will find a successful resolution.
“There can be no assurance that the Company will satisfy the conditions to a permanent waiver of such defaults, that the Company’s review of strategic and financing alternatives will result in any transaction or other outcome favorable to the Company or its stockholders or that the Company will be able to achieve a sustainable capital structure,” the filing stated.
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