that the company’s two largest creditors, private equity firm Apollo and investment manager PIMCO, entered an agreement to work together in any negotiations with Carvana, which many investors interpreted as a sign of the used car dealer’s impending declaration of bankruptcy. Carvana has not commented on that possibility.
Dad Garcia II, the owner of used car retailer DriveTime Automotive, holds no formal position at Carvana–he pled guilty to bank fraud in 1990 in connection to Charles Keating’s Lincoln Savings & Loan scandal and is legally barred from employment at any New York Stock Exchange-listed company. Yet, he, along with his son, has maintained effective control of Carvana since bankrolling the company in 2013 as an e-commerce spinoff of DriveTime.
The elder Garcia sold his Carvana stock through an automated 10b5-1 trading plan, a common mechanism meant to help executives avoid the appearance of insider trading.
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