Carvana Asks Bondholders to Take Big Hit to Cut $8 Billion Debt

Carvana Co. was custom-built for the low-interest, easy-credit era. It raised billions of dollars on promises of revolutionizing the used-car business via a streamlined online sales model, then it used the money to buy hundreds of thousands of preowned autos and lure buyers with cheap loans. A semiconductor shortage that crippled new-car manufacturers boosted sales, and revenue jumped eightfold over six years. The company built dozens of auto-filled glass towers and repair centers across the US, where customers slide a pancake-size coin into a slot to get their vehicle, as if from a vending machine. Shares that opened at $15 ...