Private Lenders Plan Zips Car Wash Takeover in Bankruptcy (1)

Car wash operator Zips Car Washhas filed for bankruptcy with a plan to hand over control of the business to its private credit lenders.

The company filed for Chapter 11 in Dallas on Wednesday with $654 million of total funded debt, according to court documents.

Through the restructuring, Zips plans to reduce its debt by about $279 million and secure $15 million of new capital, it said in a separate statement. It expects to emerge from bankruptcy in about two to three months.

The Atlantic Street Capital-backed company had been in negotiations with lenders including HPS Investment ...