FORT WORTH, Texas — AmeriCredit Corp. has tripped convenants in an agreement with their warehouse facility that may spell further trouble for the embattled subprime lender, according to BNET.com.

The agreement imposed a limit of 8.5 percent on AmeriCredit's six-month average default rate. In their second-quarter regulatory 10-Q filing, the lender stated that it had breached that convenant and was in the process of negotiating a waiver with its creditors.

"Management said in its 10-Q regulatory filing that its warehouse lenders did provide covenant waivers through March 9 and the company is negotiating with its credit providers to amend the lines of credit in exchange for some combination of reduced capacity, enhanced collateral, and/or re-pricing," BNET blogger David Phillips wrote. "Such a move, however, will likely lower the company’s forward origination volume — adversely impacting operating profitability."

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