AmeriCredit: Less Lending, Big Losses

With loan originations drastically down, independent lender AmeriCredit Corp reported a net loss of $27.2 million for its first fiscal half and served notice the red-ink situation might not turn around this year.

CEO Daniel Berce says in a financial report the recession has contributed to an increase in delinquent accounts that are more than 31 to 60 days old.

“We are focused on maximizing cash collections from our loan portfolio and diligently managing the business to preserve capital and liquidity,” he says.

Total liquidity shrank at Dec. 31 to $166.7 million of unrestricted cash and about $209.0 million of available borrowing capacity on unpledged eligible receivables, Berce says.

AmeriCredit, primarily a subprime lender, has about 1 million customers and $13 billion in auto loan and lease receivables.