The restructuring agreement announced by online car dealer Cazoo this week to deleverage its capital structure and further improve its financial flexibility won’t yet smooth its investors’ journey, and stakeholders should “buckle up” according to one expert.
It was revealed on Wednesday that the automotive e-commerce firm Cazoo and its bondholders agreed a debt-for-equity swap, replacing nearly $630m (509m) of debt for $200m of new debt and equity stakes.
Many of those who took Cazoo shares which have fallen in value by more than 95% since its New York Stock Exchange listing are now facing a grim loss, and the debt for equity swap will further dilute the value of those shares.
“Existing shareholders are left with an 8% stake in the b…
Read the full article at: https://www.am-online.com/news/dealer-news/2023/09/22/debt-restructuring-will-do-little-to-fix-cazoo-s-rickety-engine