Used-car retailer Carvana slumps after Wedbush says bankruptcy risk rising

Dec 7 - Shares of Carvana Co

Brokerage Wedbush also downgraded its rating on the stock to 'underperform' from 'neutral,' sending Carvana's shares to a record low. Carvana's bonds have been under pressure this year, with notes maturing in 2025 trading at 45 cents on the dollar, slightly above the record low of 40 cents hit a month earlier. At the start of the year, they were trading at 97 cents on the dollar.

Combined with the departure of Carvana's director of investor relations, Wedbush said it believed the developments indicate a higher likelihood of debt restructuring that could "leave the equity worthless in a bankruptcy scenario, or highly diluted at best."

Something's wrong at Carvana: with new car prices up, used cars should be doing well. Inquiring minds want to know.

What would happen to all the loans that Carvana services for their customers who bought cars?

Loans Loans Latest News, Loans Loans Headlines

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