Carvana is in the headlines semi-frequently, but recent news may spell the end of the digital vehicle vending machine empire.
Spiraling shares and a truce between the company's largest creditors have bankruptcy fears as high as the stock value is low.
Creditor truce? Yeah, that was weird to us, too, so we looked into it. The Apollo-Pimco truce means 10 creditors will negotiate with Carvana as a team instead of being used to entice better deals from one another. So the creditors will have more control over any potential restructuring efforts.
Ouch. The news led to a quick 40% value drop and a market downgrade to "underperforming." The company's new target price is $1, while just last week it was $9.