SelectQuote Raises Going Concern Warning and Begins Talks With Lenders
May 05 2022 - 5:59PM
Dow Jones News
SelectQuote Inc. said there could be major doubts about its
long-term survival if negotiations with senior secured lenders
aren't successful.
In a Securities and Exchange Commission filing Thursday, the
Overland Park, Kan.-based insurance distributor said that, under a
credit facility, it must maintain a certain financial ratio.
As of March 31, the business was in compliance but said
forecasts show a risk it could fall out of compliance within a
year. That would permit lenders to declare a default and demand all
amounts due, liquidity that SelectQuote would lack.
SelectQuote spokesman Matt Gunter said the company has "a
relatively small group of lenders" and is "in active and
constructive dialogue" about a debt covenant waiver or
modification.
It currently owes more than $700 million under the facility.
Write to Becky Yerak at becky.yerak@wsj.com
(END) Dow Jones Newswires
May 05, 2022 17:44 ET (21:44 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
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