Stabilizing a Distressed Subprime Auto Lender
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2026年4月07日
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Amid record auto asset-backed securities (“ABS”) defaults and underperforming loans that threatened the financial health of a subprime auto lender, its private equity sponsor engaged FTI Consulting to evaluate the lender’s portfolio and help it to successfully negotiate new financing and restructure obligations.
Our Impact
- The sponsor gained the clarity and confidence to make time-critical decisions, closing key gaps in the lender’s auto-ABS modeling, valuation and debt pay-down projections.
- Our client gained a clear, decision-ready view of cash flows and valuations through scenario-based analysis, enabling confident debt serviceability assessments grounded in industry-standard practices.
- Stakeholders were able to negotiate with confidence under tight timelines, backed by clear financial analysis and structuring insights that strengthened their position with prospective lenders.
Our Role
- FTI Consulting leveraged structured products and credit markets expertise to deliver rigorous valuations and sensitivity analyses for all residuals and tranches of auto-ABS deals the lender had exposure to.
- Our experts tailored the analyses across deal vintages by developing comparative market benchmarks and performance statistics, enabling reliable cash flow projections that captured the evolution of underwriting criteria and deal performance over time.
- The team partnered directly with the auto lender’s management team to gain a comprehensive understanding of the modeling nuances and establish robust ranges of valuation.
- FTI Consulting developed debt serviceability schedules that integrated with a pro-forma operating model to assess the viability and solvency implications of the proposed new debt raise.
相关信息
发布于
2026年4月07日
主要联络人
Senior Managing Director, Co-Leader of Financial Services
资深董事总经理
董事总经理