Carvana Co.’s creditors are proposing a debt-for-equity swap to boost liquidity of the Tempe-based online used car retailer, Bloomberg reported.
The group of creditors holding around 90% of Carvana’s bonds — including Apollo Global Management and Pacific Investment Management — suggested swapping a considerable amount of unsecured notes for equity in the company, according to Bloomberg, citing people familiar with the matter in its April 28 report.
The report comes just days ahead of when Carvana will release its first quarter earnings on May 4.
The group, represented by White & Case and PJT Partners, also offered to allow the company to pay some of its interest with additional debt, commonly referred to as payment-in-kind.
Carvana has not yet formally engaged with creditors’ offers and terms may change as the proposal is not final, Bloomberg reported.
