Carvana's Debt Restructuring Deal Boosts Shares and Reduces Debt by $1.2 Billion

Carvana, the online used-car retailer, has reached a debt restructuring agreement with most of its bondholders to lower interest payments and improve its financial position. The company, which experienced rapid growth during the pandemic, struggled with falling used car prices and rising interest rates. Under the agreement, creditors will receive new secured notes, with interest paid in kind for the next two years. Carvana also reported a second-quarter loss of $105 million, an improvement from the previous year. The debt restructuring covers over 90% of Carvana's $5.7 billion in unsecured notes, with the remaining creditors offered the opportunity to join the deal.