Lenders to Cazoo, the British-based on-line automobile retailer, have enlisted bankers to spearhead talks with the corporate a couple of £510m debt restructuring.
Sky News understands that the holders of convertible notes due for compensation in 2027 have engaged PJT Partners to advise them on negotiations with the corporate.
The discussions have been flagged by Cazoo in an announcement to the New York Stock Exchange, the place it’s listed, earlier this week.
Cazoo’s share worth efficiency because it went public in 2021 by way of a merger with Ajax I, a particular function acquisition firm (SPAC), has been disastrous.
Nevertheless, its working efficiency has proved extra strong, with the corporate declaring itself “very pleased” with its gross sales within the second quarter of 2023.
Last yr, it pulled out of European markets to concentrate on the UK, whereas it has additionally sought to scale back its money burn by scaling again its array of high-profile sports sponsorship offers.
Read extra:
Chancellor comfy with recession if it brings down inflation
Elon Musk wins bid to place microchips in individuals’s brains
The firm was based by Alex Chesterman, the founding father of property portal Zoopla and one in every of Britain’s most profitable entrepreneurs.
One particular person near Cazoo identified that it had greater than £200m of money on its stability sheet, that means that there was ample time to conduct negotiations with the noteholders.
Some analysts imagine the debt restructuring talks are anticipated to be adopted by a suggestion to take the corporate non-public once more.
Cazoo, which is being suggested by bankers at Goldman Sachs, declined to touch upon Friday.
Content Source: information.sky.com