Curo Group Holdings Discloses Potential Covenant Breach

Curo Group Holdings Corp (CURO) has released an update to notify the public and investors about a regulation fd disclosure.

On February 1, 2024, a company acknowledged potential non-compliance with a liquidity covenant from a First Lien Credit Agreement, risking an event of default if liquidity fell below $75 million. The same day, it also opted to delay interest payments on its Senior Secured Notes, triggering a cross default under the credit agreement, which was temporarily waived by lenders. To address these challenges, the company is soliciting consents from note holders to waive potential defaults and extend grace periods for payments. Concurrently, the company is negotiating a broader financial restructuring with key stakeholders, though no agreement has been finalized.

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For a comprehensive understanding of the announcement, you can read the full document here.