CURO Group Files For Chapter 11 Bankruptcy Protection

(RTTNews) - Consumer lending company, CURO Group Holdings Corp. (CURO), Monday announced that it has filed for voluntary relief under Chapter 11 of the United States Bankruptcy Code in Texas.

The Chicago-based firm said that it has also entered into a Restructuring Support Agreement to reduce debt by approximately $1 billion, saving the Company approximately $75 million in cash interest annually and enabling CURO to invest in long-term growth.

Meanwhile, the company ensured that the branches will operate as usual in the U.S. and Canada, and customer loans will remain unaffected. It also expects to complete the restructuring process within 120 days.

CURO further stated that it has received a commitment of up to $70 million of new capital in the form of debtor-in-possession financing from certain of the company's prepetition stakeholders, which would support the ongoing operations.

"Implementing this restructuring through a court-supervised process is the most efficient path to enable us to make changes to our capital structure that will allow us to continue to grow responsibly, execute with excellence and solidify the foundation of the Company," said Doug Clark, Chief Executive Officer at CURO.

Currently, CURO's stock is gaining 1.65 percent, to $0.092 on the Other OTC.