Zips Car Wash Restructuring Plan Approved in Bankruptcy Court

Zips Car Wash LLC secured bankruptcy court approval of its reorganization plan with support from its junior creditors and lenders.

With the nod Friday from Judge Michelle V. Larson of the US Bankruptcy Court for the Northern District of Texas, the plan hands Zips over to a group of lenders and cancels millions in old loans.

The company’s bankruptcy exit comes after negotiations with lenders including HPS Investment Partners, PennantPark Investment Corp., and Brightwood Capital Advisors. The company also sought rent concessions from landlords amid a cash crunch.

Atlantic Street Capital-backed Zips filed Chapter 11 in February, with its court ...