Hoonigan has allowed its forbearance to lapse as it advances talks with its lenders, according to 9fin sources.

The aftermarket auto parts company, formerly known as Wheel Pros, is attempting to draw up a potential prepackaged bankruptcy framework, sources said.

Hoonigan has been evaluating options that include out-of-court restructuring, as well as DIP financing needs for a possible bankruptcy. The DIP would allow existing revolver lenders to roll into the facility, sources said.