Lenders to Cazoo, the British-based on-line automotive 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 had been flagged by Cazoo in a press release to the New York Stock Exchange, the place it’s listed, earlier this week.
Cazoo’s share value efficiency because it went public in 2021 by means of a merger with Ajax I, a particular objective acquisition firm (SPAC), has been disastrous.
Nevertheless, its working efficiency has proved extra sturdy, with the corporate declaring itself “very pleased” with its gross sales within the second quarter of 2023.
Last 12 months, it pulled out of European markets to give attention to the UK, whereas it has additionally sought to cut back its money burn by scaling again its array of high-profile sports activities sponsorship offers.
The firm was based by Alex Chesterman, the founding father of property portal Zoopla and certainly one 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.
Source: information.sky.com”