CURO Group Holdings Corp. and certain affiliates, CCAA

CURO Group Holdings Corp. and certain affiliates (“CURO”), a group of companies operating a consumer credit lending business in the US and Canada, had their Chapter 11 proceedings recognized under the CCAA on March 26.

CURO had US$1.8 billion in assets and US$2.2 billion in liabilities as at January 1, 2024. The Canadian entities in the group have recently generated approximately half of CURO’s revenue (US$586.8 million in 2023) through the CashMoney and LendDirect brands. They operate over 150 locations across the country and employ approximately 1,075 non-unionized workers.

CURO implemented various measures to improve its financial position in the two years leading up to the filing date. However, in January 2024, it became apparent that CURO needed to undergo a comprehensive restructuring to facilitate the refinancing of its credit facilities.

CURO then focused its efforts on negotiating a restructuring with its stakeholders, resulting in a restructuring support agreement with the majority debt holders under loans and notes due in 2027 and 2028. The agreement provides for a pre-pack balance sheet restructuring which is anticipated to reduce CURO’s debt by approximately US$1.0 billion and save approximately US$75.0 million in cash interest annually.

The voting deadline for the pre-pack plan is April 19.

FTI is the information officer.

Counsel is Cassels for CURO, Bennett Jones for the information officer, Fasken for WF Marlie 2018-1, Ltd. by its Administrative Agent, Waterfall Management, LLC and Osler for Midtown Madison Management as Canada II Administrative Agent.

By: Dina Milivojevic