Centrix Financial, the former title sponsor of the Grand Prix of Denver, has been pushed toward bankruptcy by three creditors who claim they are owed more than $4.6 million.
IFC Credit Corp, Suntrust Leasing and Wells Fargo Equipment Finance initiated a Chapter 11 filing for Centrix in U.S. Bankruptcy Court in Denver.
The companies, which leased equipment, software and other products to Centrix, have not been paid for “a number of months,” said Lee Kutner, an attorney for the creditors.
IFC and Suntrust say they are each owed roughly $2.15 million and Wells Fargo says it is owed $345,000.
Centennial-based Centrix has 20 days to respond to the bankruptcy filing, which was made Friday.
“The action taken by these creditors is unfortunate given the previously announced steps Centrix is taking toward a proposed sale of the company,” Centrix spokeswoman Lauren Baker said today. She declined further comment.
Centrix provides auto loans to subprime borrowers. The company has struggled financially over the past year, cutting its workforce from 1,500 to 500.
Last week, Centrix announced that a group of investors that include chief executive Robert Sutton has agreed to purchase the company. Financial terms of that sale, expected to close in November, haven’t been disclosed.
