According to an article in Bloomberg, Service King has warned its lenders that dwindling cash is casting doubt on its ability to pay debt and continue as a going concern. The business news publisher cites anonymous sources familiar with the company’s financial results indicating that lower sales compared to pre-pandemic levels is impacting the company’s ability to service its debt.
According to the article, Service King had 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. The company, backed by Blackstone, Inc.
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