Apollo, Pimco in Pact to Prevent Creditor Brawl Over Carvana
- Used-car dealer’s largest creditors sign cooperation agreement
- Deal is meant to prevent infighting among company’s lenders
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Some of Carvana Co.’s largest creditors including Apollo Global Management Inc. and Pacific Investment Management Co. have signed a pact that binds them to act together in negotiations with the company, a move meant to prevent the kind of nasty creditor fights that have complicated other debt restructurings in recent years.
A group of funds holding around $4 billion of Carvana’s unsecured debt, or around 70% of the total outstanding, have signed the cooperation agreement, which will last a minimum of three months, according to people with knowledge of the matter who asked not to be named because they were not authorized to speak publicly.