Major Carvana bondholders reportedly to oppose restructuring plan

Carvana shares, which had jumped as much as 29%, have pared gains to about 9% on Wednesday following a Bloomberg report saying that a group of funds holding most of Carvana’s more than $5 billion in bonds will oppose a restructuring plan that the online auto seller wants as a way to rein in its debt load. Carvana said Wednesday it would offer to exchange as much as $1 billion of its unsecured bonds at discount prices in an effort to extend looming repayment deadlines. Bondholders that banded together late last year to negotiate with Carvana see the new proposal as a nonstarter, Bloomberg’s Eliza Ronalds-Hannon and Rachel Butt reported, citing people familiar with the matter. Together, the group holds more than 80% of Carvana’s debt, putting it in a position to block debt restructuring efforts. Reference Link