Carvana creditors propose debt-for-equity swap, Bloomberg reports

Creditors holding about 90% of Carvana’s bonds have been pitching the company on ways to pare down debt and improve liquidity, including a proposal for a debt-for-equity swap, Rachel Butt, Erin Hudson and Eliza Ronalds-Hannon of Bloomberg report, citing people with knowledge of the situation. The group recently offered to swap a substantial amount of unsecured notes for equity in Carvana, sources told Bloomberg. The bondholders also said they would allow the company to pay some of its interest with additional debt, a feature known as payment-in-kind, Bloomberg adds. Carvana has not formally engaged with the group’s offers, the people said. Reference Link