After being granted two extensions, America’s Car-Mart announced Friday it had worked out an agreement with lenders to avoid default on outstanding debt.
How it got here: Car-Mart, one of the nation’s largest buy-here, pay-here dealers, took out a $300 million loan with Silver Point Finance, LLC, in October 2025.
The Arkansas-based company disclosed in its January on its third-quarter financial statement that it had $892 million in debt.
A June 5 filing with the U.S. Securities and Exchange Commission (SEC) showed Silver Point Finance and other lenders gave Car-Mart an extension through Friday, June 12, to avoid default.
A second extension was given until June 19.
Agreement terms: According to the late Friday announcement, Car-Mart and Silver Point added an amendment to the credit agreement.
The amendment allows Car-Mart to work with its financial advisor, Houlihan Lokey Capital, Inc., to complete “a review of strategic alternatives.”
Have a special committee of board members evaluate financing alternatives.
Silver Point and lenders waive default through early September, with a possibility of extending until November by meeting agreed milestones to be detailed in an updated SEC filing.
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What they’re saying: “The Amendment provides us the time to evaluate strategic alternatives and pursue an outcome that best serves our stakeholders,” said Doug Campbell, Car-Mart CEO, in a press release. “We appreciate our lenders’ cooperation and their agreement to provide us this time, and we are focused on executing on the milestones ahead.”
What it means: Car-Mart avoided default for the time being, but still has to work to chew down significant debt. Plus, as previously covered, a possible default would likely have ripple effects through the broader subprime market, which is already seeing delinquencies rise.
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