Westlake Services LLC, buys Western Funding

Westlake Services LLC, a Los Angeles-based subprime auto lender, beat out initial, “stalking horse” bidder Carfinco Financial Group Inc. at a bankruptcy auction for Las Vegas-based Western Funding Inc.'s assets this week.

Westlake agreed to pay $26.2 million for Western Funding’s $34.5 million portfolio, topping Carfinco’s $24.5 million bid.
Although Carfinco looked to be a shoe-in, CEO Tracy Graf told Auto Finance News earlier this month that nothing was certain until after the bidding process. In a statement issued after the auction, Graf said the bidding had reached a purchase price that exceeded Carfinco management's threshold for risk versus return-on-equity.

Westlake will also pay $815,000 to Carfinco ― a $365,000 breakup fee and $450,000 of expense reimbursement, protections put in place when the Canadian lender agreed to serve as lead bidder in November.

Western Funding, a 51-year old company, filed for bankruptcy in September.

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