Goeasy Ltd.’s stocks and bonds tumbled after the Canadian subprime lender suspended its dividend, withdrew its financial outlook and disclosed hundreds of millions of dollars in loan losses tied to its vehicle finance business.
The Mississauga, Ontario-based lender will record a total of about C$331 million ($244 million) in net charge-offs for the fourth quarter. The firm said it will write down C$233 million tied to consumer loans, interest and fees associated with its LendCare Holdings unit, which finances autos and “powersports” equipment such as all-terrain vehicles.
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