Zips Car Wash to Repay 75% of Private Loan Once Valued Near Par

Bankrupt car wash operator Zips Car Washwould repay lenders about 75 cents on the dollar under a debt-cutting plan that hands them ownership of the chain.

Under the company’s reorganization proposal, lenders, including funds managed by Brightwood Capital Advisors, HPS Investment Partners and Northleaf Capital Partners, would split $375 million in new debt in exchange for canceling more than $600 million in old loans. The loans and the equity in Zips are worth about 75% of what they are owed, according to court documents filed Monday in Dallas.

The company filed for Chapter 11 bankruptcy last month in Dallas ...