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Blackstone’s Service King Nears Out-of-Court Deal to Ease Debts

  • The auto repair chain could cede control to its bondholders
  • Company has struggled with cash crunch and labor shortage

Auto collision repair company Service King, suffering from rising costs and labor shortages, is nearing an out-of-court deal to ease its debt load ahead of a looming bond maturity, according to people with knowledge of the situation.

The proposal calls for bondholders led by Clearlake Capital Group to take control and inject around $100 million, said the people, who asked not to be identified because the talks are private. Clearlake, based in Santa Monica, California, and Service King’s majority owner, New York-based Blackstone Inc., declined to comment. Dallas-based Service King and minority shareholder Carlyle Group Inc. didn’t respond to messages.