(Bloomberg) -- Clearlake Capital Group-backed Wheel Pros LLC skipped interest payments due on some of its term loan debt, according to people with knowledge of the matter.
The company, which announced a rebranding to Hoonigan last year, told investors it has triggered a brief grace period to make the overdue payments, said the people, who asked not to be identified discussing a private matter. Non-payments could result in an event of default, allowing creditors to accelerate principal repayments and push the company into a restructuring, they said.
Messages left with the company and Clearlake were not returned.
Read: Clearlake’s Wheel Pros Inks Rescue Financing Loan, Debt Swap
Wheel Pros has faced multiple pressure points, including working capital swings, inflationary pressure and declining demand for its goods, said the people.
The latest money woes come after the company inked a controversial deal in September that provided for $235 million in new money and below-par debt exchanges.
Wheel Pros, which makes customized wheels for vehicles, has endured a prolonged earnings decline and has shuttered locations of a brand it acquired in 2022.
Its more than $1.1 billion loan maturing in 2028 is quoted at around 79.5 cents on the dollar, according to data compiled by Bloomberg.
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