Vroom To Restructure $290M Of Unsecured Convertible Notes Into Equity

Author: Benzinga Newsdesk | November 12, 2024 05:12pm

Positions the Company for Long-Term Growth

Vroom, Inc. (NASDAQ:VRM), a leading automotive finance company and an AI-powered analytics and digital services platform for automotive retail, today announced that it has made the strategic decision to enter into a Restructuring Support Agreement (RSA) with holders of an overwhelming majority of its outstanding funded debt and its largest stockholder. The parties to the RSA have agreed to pursue a comprehensive transaction that will restructure Vroom, Inc.'s outstanding funded debt, consisting of approximately $290 million of unsecured convertible senior notes due in 2026 (Notes), into equity. Vroom, Inc. is the holding company of operating subsidiaries including United Auto Credit Corporation (UACC), CarStory, LLC (CarStory), and Vroom Automotive, LLC and does not itself have operations.

• Vroom, Inc. intends to voluntarily file a prepackaged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. Vroom, Inc.'s subsidiaries are not expected to be impacted by the prepackaged Chapter 11 case and are expected to continue to operate in the ordinary course. Vroom, Inc. anticipates emerging promptly from the prepackaged Chapter 11 case at the end of 2024 or early 2025.

Posted In: VRM