Car Financing Firm Vroom Files for Chapter 11 in Texas

Automotive financing provider Vroom, Inc., which entered a restructuring support agreement with creditors and its largest stockholder, has filed for bankruptcy.

Vroom filed for Chapter 11 in the Southern District of Texas court. It listed assets of $43.8 million against total debt of $304.6 million in its petition.

Under the firm’s plan, Vroom’s $290 million of unsecured convertible senior notes due in 2026 will be restructured into equity. Distressed credit-focused hedge fund Mudrick Capital Management backs the plan and was “instrumental in the negotiations” leading to the restructuring, the company said in a statement on Tuesday.

Vroom owns United ...