An American subprime auto loan company is reportedly seeking relief funds to avoid bankruptcy. Its stock price plummeted 68% on Wednesday.

According to sources, the used car dealer and subprime lender America's Car-Mart Inc. is scrambling to raise funds at the last minute to avoid filing for bankruptcy, as the company is on the brink of default after facing cash shortages. A source revealed that the company has hired Houlihan Lokey Inc. to contact investors to assess whether they are interested in providing at least $500 million in new funding. The source, who requested anonymity due to the sensitive nature of the matter, mentioned that the new funds would be used to help the struggling borrower fill the liquidity gap and repay existing lenders. The source also revealed that the company has started preparing for a possible Chapter 11 bankruptcy filing; currently, the company has reached a extended forbearance agreement with lenders, with an expiration date of June 12. America's Car-Mart's stock price plummeted by 68% to $1.67 on Wednesday, reaching its lowest level since going public in 1992. Shortly after the outbreak of the pandemic, the company's stock price had reached a peak of around $152.