Carvana plunges 45% as major creditors reportedly form pact to cooperate on restructuring

Dec 7 2022 by Business Insider

 
Carvana CEO Ernest Garcia III.

Brendan McDermid/Reuters

Carvana stock plunged 45% to a record low on Wednesday after a report of a pact between creditors. The pact was signed by 70% of Carvana's unsecured debt holders, and it is designed to prevent a nasty creditor fight if Carvana goes bankrupt.Carvana's bonds traded for just 32 cents on the dollar on Wednesday, signaling that investors think a bankruptcy may be looming.

Carvana stock plunged 45% to a record low on Wednesday after a group of...

Continue Reading Carvana plunges 45% as major creditors reportedly form pact to cooperate on restructuring