Uncertainty over future of Car Finance Company
The private equity backer of Britain’s leading sub-prime car lender has written off its entire investment in the business and withdrawn its funding, highlighting growing fears over the state of the motor finance industry.
The Car Finance Company said that there was “material uncertainty” over its future after Pine Brook, its American private equity owner, backed away from supporting the lender only two years after it had bought the business.
In accounts filed with Companies House, Pine Brook said that its £50 million investment in The Car Finance Company was not considered recoverable as the latest accounts showed that the proportion of arrears had more than doubled to 18.4 per cent in 2016 from 8.2 per cent a year earlier. Impairments rose by 371 per…
The Car Finance Company said that there was “material uncertainty” over its future after Pine Brook, its American private equity owner, backed away from supporting the lender only two years after it had bought the business.
In accounts filed with Companies House, Pine Brook said that its £50 million investment in The Car Finance Company was not considered recoverable as the latest accounts showed that the proportion of arrears had more than doubled to 18.4 per cent in 2016 from 8.2 per cent a year earlier. Impairments rose by 371 per…
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