Carvana Co.’s debt swap proposal launched on Wednesday doesn’t have support from the group of investors who own a majority of the company’s nearly $6 billion in unsecured bonds, WSJ Pro Bankruptcy reported. The used-car retailer is asking bondholders to swap some of their holdings at a discount into an up to $1 billion new secured bond, which would have a second-priority claim on collateral including certain assets and property owned by the Tempe, Ariz-based company, such as some of its vehicles. Even if fully subscribed, the deal would only result in reducing Carvana’s debt by at most a few hundred million dollars. The bondholder group, which includes Apollo Global Management Inc., Pacific Investment Management Co. and Ares Management Corp., owns at least 70% of the outstanding bonds.
