Carvana creditors ink cooperation agreement ahead of expected cash crunch for used car seller: Bloomberg

Carvana Co.
CVNA,
-5.49%
creditors led by Apollo Global Management Inc.
APO,
-1.95%
and Pacific Investment Management Co. inked an agreement to team up in credit talks with the company in a move to avoid the conflicts that have arisen in other debt restructurings, Bloomberg reported Wednesday. Firms holding 70% or about $4 billion of Carvana’s unsecured debt have signed the cooperation agreement, the report said, citing unnamed sources. Carvana has been burning through cash, causing creditors including Apollo, Pacific Investment, as well as BlackRock Inc.
BLK,
+0.34%,
Ares Management Corp.
ARES,
-0.23%,
and Knighthead Capital Management to come up with a pact to prevent infighting. The agreement will last at least three months. Carvana stock has dropped 97% in 2022, compared to a 29.6% drop by the Nasdaq
COMP,
-2.00%.