Curo Group is working with Oppenheimer as financial advisor as the payday lender negotiates with creditors after it failed to make coupon payments on its secured notes, said two sources familiar with the matter.

Oppenheimer advised Curo last year alongside Jefferies when it executed an exchange of its 7.5% first lien notes due 2028 into 1.5 lien secured notes with a similar coupon and maturity, according to the sources. Kirkland & Ellis acted as legal advisor to the company and Wachtell, Lipton, Rosen & Katz advised a group of holders, according to SEC filings.

Curo disclosed last week that it is working with unnamed advisors on a “potential comprehensive financial restructuring” and has engaged in discussions with creditors. The company reiterated those talks are ongoing, in a filing on Monday.

Curo is operating under a 30-day grace period after it failed to make an interest payment on its second lien notes. The issuer also missed the interest payment on its 1.5 lien notes and has until the beginning of March to make the payment after it secured a consent solicitation to extend the grace period from seven days to the third-day period matching the second lien facility.

In addition, Curo warned last week that it may not be in compliance with a requirement to maintain USD 75m in liquidity but later concluded it was in compliance, according to filings.

CURO reported an 8% decrease in revenue of USD 168m for 4Q23, versus USD 182m for 4Q22, due to a strategic shift toward a higher mix of longer-term, lower yield and lower-risk products.

Along with its senior notes, Curo has several securitization facilities that it uses for its US and Canadian businesses. Atalaya Capital Management is one of the most notable parties involved in the company’s SPVs, according to a Debtwire credit report.

The investment group previously provided a USD 250m SPV facility to a different payday lender, CNG Holdings, that worked with Oppenheimer on an exchange offer to extend maturities on senior secured notes to 2026.

Curo and Oppenheimer did not return requests for comment.