Blackstone Inc.’s Service King Collision Repair Centers Inc. has engaged AlixPartners LLP as a restructuring adviser as the company contends with headwinds in its business and faces a looming debt maturity, WSJ Pro Bankruptcy reported. Investors in the company’s $775 million senior loan in recent weeks signed nondisclosure agreements with the company in order to negotiate debt restructuring terms. The company faces a debt maturity in July. The automotive collision-repair business has struggled since the onset of the pandemic due to fewer collisions and higher labor costs. Service King also has faced setbacks after putting new operating systems in place. The company has been working to conserve cash since last fall when it elected to defer cash payments to term lenders and instead tack on additional debt to the loan balance. Service King also drew down on a revolving line of bank credit.
