America’s Car-Mart has been given a fifth extension to avoid default on its outstanding debt.
Driving the news: In a filing with the Securities and Exchange Commission today (Oct. 1), America’s Car-Mart, a BHPH dealer based in Arkansas, stated that its lender, Silver Point Finance, has given it an extension until Oct. 8 on its outstanding debt.
For context, Car-Mart secured a $300 million loan in October 2025 from Silver Point.
After two extensions in June, Silver Point amended terms with a September 4 deadline before the latest five extensions.
Looking for funding: America’s Car-Mart stated it continues to see 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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More background: America’s Car-Mart operates 94 locations.
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.
The company owed $623.9 million as of July 31.
Bottom line: America’s Car-Mart leadership continued to stress in its filing that 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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