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PrimaLend’s Creditors Criticize Bankruptcy for Excluding Key Division
By Steven Church and Eliza Ronalds-Hannon on October 24, 2025, at 6:10 PM UTC
A coalition of creditors from the bankrupt auto-dealership lender PrimaLend has voiced serious concerns regarding the company’s Chapter 11 bankruptcy filing. Their primary issue revolves around the exclusion of what they describe as the company’s «most distressed» unit from the bankruptcy proceedings.
This ad hoc group consists of bondholders holding $75 million of debt issued by PrimaLend’s primary holding company, which has not made interest payments for several months. The creditors argue that this exclusion is a strategic move to diminish the influence of unsecured creditors like themselves. They have also opposed PrimaLend’s request for court approval to secure bankruptcy financing, which includes demands for guarantees and legal releases from the excluded entity, PCAP Holdings.
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Source: Original