Carvana debt bills come due with business ‘firmly in retreat’

Carvana Co. is staring down rising interest payments each of the next three months with vehicle sales and earnings moving in the wrong direction.

After making an ill-timed acquisition just as sales and used-car prices took a turn, the once rapidly growing retailer is “firmly in retreat mode,” Kevin Tynan, a Bloomberg Intelligence auto analyst, said in a note. Carvana shares fell as much as 4.5% to $9.63 before the start of regular trading. Carvana’s biggest problem is its debt, which stands at more than $8 billion with $2.4 billion in cash burn projected over the next two years, according to Levington. “They need to restructure their balance sheet,” he said in a phone interview. “They probably need to shave off 85% of their debt, otherwise they will be a vulnerable company for years.”

“We’ve got a real shot at not requiring additional capital,” Garcia said, citing the company’s real estate portfolio as one potential source of funds. “If we’re wrong, then we have lots of ways to go out and get additional capital.”

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Carvana's losses widen as the used-car market stalls | CNN BusinessLast year was a wreck for Carvana, the online used-car seller known for its tall glass 'car vending machines.' In 2022, the company sold fewer cars than it had the year before — the first time that's happened in nine years — and the company's losses grew as the used car market soured. Who would buy a gas car now Joe Biden is on record in the SOTU saying the US will not use any oil or gas in 10 years, that means phasing out 10% a year for the next 10 years means gas will become ultra-expensive. I'm sure it wasn't ..... Over pricing the crap out of cars, adding huge delivery fees, and refusing to negotiate or entertain fair offers. Dr. Ebrahim Rigi was arrested during a recent protest in Zahedan. Ebrahim had been released on bail but was arrested again by IRGCterrorists yesterday and murdered in police custody under torture. He was known to help provide medical care to wounded protestors. IRGCterrorists
Source: CNN - 🏆 4. / 95 Read more »