Auto repair company Service King has warned its lenders that dwindling cash is casting doubt on its ability to pay debt and continue as a going concern, according to people familiar with the closely held company’s most recent results, Bloomberg News reported. The Blackstone Inc. and Carlyle Group Inc.-backed company reported $31 million in cash as of the third quarter after it drew $72 million on its revolving credit facility and maxed out its borrowing availability, said the people, who asked not to be identified because the results were private. The company also entered into a sale-lease-back agreement with some of its real estate holdings that generated $66 million in gross proceeds, the people said. The auto collision repair company has seen its earnings drop as less drivers took to the road during the pandemic. It reported a loss of $6 million in adjusted earnings during the third quarter, more than the $5.4 million loss it reported in the same period a year ago and far from the $27 million gain the company reported in 2019, the people said.
