Carvana shares on Wednesday dropped over 40% to a new low after Bloomberg reported the company was speaking with lawyers and investment bankers about options for managing its debt load.
The company has suffered from waning used-car demand and high costs, forcing it to undertake job reductions to rein in expenses this year.
Its notes maturing in 2025 remained under pressure at around 42 cents on the dollar, above a low of 40 cents a month earlier but down from around 43 cents late on Wednesday.
Do investors who sold CVNA yesterday regret it?
decisive Rabbit_9072 : This could be a bear trap…. CVNA is like a broken clock …. Very worrisome