Cazoo debtholders draft in bankers forward of crunch talks

Lenders to Cazoo, the British-based on-line automotive retailer, have enlisted bankers to spearhead talks with the company a few £510m debt restructuring.

Sky Information understands that the holders of convertible notes due for compensation in 2027 have engaged PJT Companions to advise them on negotiations with the company.

The discussions had been flagged by Cazoo in a press launch to the New York Inventory Trade, the place it’s listed, earlier this week.

Cazoo’s share worth effectivity as a result of it went public in 2021 by way of a merger with Ajax I, a specific goal acquisition agency (SPAC), has been disastrous.

However, its working effectivity has proved further sturdy, with the company declaring itself “more than happy” with its product sales throughout the second quarter of 2023.

Final 12 months, it pulled out of European markets to offer consideration to the UK, whereas it has moreover sought to chop again its cash burn by scaling once more its array of high-profile sports activities actions sponsorship presents.

The agency was primarily based by Alex Chesterman, the founding father of property portal Zoopla and positively considered one of Britain’s most worthwhile entrepreneurs.

One specific particular person close to Cazoo recognized that it had larger than £200m of cash on its stability sheet, that implies that there was ample time to conduct negotiations with the noteholders.

Some analysts think about the debt restructuring talks are anticipated to be adopted by a suggestion to take the company private as soon as extra.

Cazoo, which is being prompt by bankers at Goldman Sachs, declined to the touch upon Friday.