Hyperdrive
Carvana Edges Toward Reworking Debt as Cash Burn Ups Risks
- Car seller eyes its options as creditors band together
- Company’s bonds are trading below 45 cents on the dollar
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Carvana Co. is consulting with lawyers and investment bankers about options for managing its debt load as plunging used car prices and the company’s swift cash burn threaten its future solvency.
The online car seller has spoken with advisers at Kirkland & Ellis and Moelis & Co., according to people with knowledge of the matter, who asked not to be identified talking about confidential discussions. Carvana is considering possibilities while some of its largest creditors are banding together to negotiate as a bloc with the company.