America's Car-Mart, Inc.
(NASDAQ:CRMT) stock surged Monday after the used-car retailer announced a key amendment to its credit agreement, easing near-term liquidity concerns that had fueled a sharp selloff in recent sessions.
The amendment provides the company with additional financial flexibility following weeks of mounting worries over its liquidity position.
The announcement follows a Bloomberg report that America's Car-Mart, a used-car retailer and subprime auto lender, had been pursuing an eleventh-hour capital raise to avoid a potential bankruptcy filing after a cash crunch pushed the company to the brink of default, citing people familiar with the matter.
The report added that lenders in the subprime auto finance market have been grappling with challenging conditions as high inflation and elevated interest rates strain lower-credit borrowers.
