BHPH lender Synergy Capital Auto files for bankruptcy

Bogged down by debt, buy-here, pay-here lender Synergy Capital Auto Lending filed for Chapter 11 bankruptcy protection in the Western District of Texas on April 25. Synergy Capital provides in-house financing for its affiliated dealership, called Texas Auto Save (TAS), which jointly filed Chapter 11. Both San Antonio-based companies are 51% owned by Alex Sinno and 49% owned by Vasireddy Sirdhar , according to the bankruptcy filing. Combined, the companies owe about $14 million to their creditors. A handful of other companies owned by Sinno, including repossessor 210 Action Recovery and real estate developer SAR American Properties , were listed as co-debtors in the bankruptcy filing. The bulk of Synergy’s debt — $10.2 million — is owed to Westlake Capital Financial , a unit of Westlake Financial Services that provides revolving lines of credit and commercial real estate loans to dealers. Synergy also owes money to the Texas Comptroller, the Small Business Administration and several merchant cash advance firms, among others. Founded in 2019, Synergy and TAS had been growing steadily for several years, backed by a credit line from PlainsCapital Bank . TAS would sell used vehicles for about $15,000 each, with an average down payment of $2,500. Synergy would then finance the remaining balance. When its borrowers’ cars broke down, Synergy Capital often performed repairs for free or at substantially reduced rates for customers with strong payment histories, according to a statement by Sinno filed with the bankruptcy court on April 27. The rationale was that, otherwise, borrowers would stop making loan payments altogether. When borrowers became delinquent on their contracts , Synergy would repossess the vehicles. About 80% would be reconditioned and then financed to new borrowers; the remainder would be sold at auction for $2,000 or $3,000 each. In 2023, Synergy replaced its PlainsCapital Bank credit line with a higher one — $16 million — from Westlake Capital and business “was booming,” according to Sinno’s statement. In the first quarter of 2024, TAS sold 391 cars. To keep up with demand, Synergy requested to draw $340,000 on its credit line in March 2024, but Westlake funded only $250,000. In April, Westlake canceled the credit line completely as it sought to reduce exposure in the buy here pay here sector , Sinno wrote. Without capital to buy fresh inventory, TAS was forced to sell only its repossessions. The financial troubles trickled down to another dealership that Sinno owned — A&F Holdings , which operated under the name Bayside Mitsubishi . The LaPorte, Texas, dealership was shuttered abruptly in late 2024 when cash-flow issues prevented it from paying off the liens on 27 trade-ins within the required 25-day timeframe Four of those were sold to subsequent borrowers, according to a cease-and-desist order filed last year by the Office of the Consumer Credit Commissioner in Texas. Sinno worked to shield Synergy. In October 2025, he replaced its accountants that it had since inception — Shilson, Goldberg, Cheung and Associates — with HHM Dealership Services Group . Seemingly, Synergy’s corporate books had become muddied, and charge-off policies were being ignored. For years, Synergy and TAS had largely been operating with “consolidated financials,” according to the Chapter 11 filing. For example, labor for collecting delinquent accounts was recorded on TAS’s books when it should have been logged on Synergy’s books. Synergy is “working through” separating these records, the filing noted. To address charge-offs, Synergy recently hired Joaquin Bermudez to replace its operations manager, who had allowed more than three payment deferments and left delinquent loans on the books longer than the industry standard 120 days. Additionally, Synergy brought on financial consultant Paul McClintock to clear out unsellable inventory. But some damage had already been done. By yearend 2025, gross revenue had fallen by 13.7% to $6.3 million and vehicle repayment revenue had dropped by 14.7% to $2.9 million, according to the bankruptcy filing. Through April 22 — days before the bankruptcy filing — Synergy’s gross revenue totaled $2.1 million and non-business revenue from the paydown of principal car notes was $464,328. TAS currently sells about 50 cars per month. Still, Sinno expects to spend “very little time in bankruptcy,” according to his statement. The reorganization plan calls for Sinno to continue to lead the company as it sells and finances vehicles, improves collections and reduces costs. As part of the reorganization, Synergy expects to repay Westlake Capital in full within eight years. Synergy will pay only interest — equal to the prime rate plus 2 percentage points — for the first year, then principal plus interest for the remaining seven years. The meeting for creditors to approve the reorganization plan is scheduled for June 1 before Judge Aubrey Thomas .

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BHPH lender Synergy Capital Auto files for bankruptcy

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