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Will Carvana go bankrupt?

Carvana's debtors are preparing for a possible restructuring. With operations failing and a deteriorating financial condition, bankruptcy is on the table. You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services.

Does Carvana's debt restructuring mean bankruptcy?

To be fair, debt restructuring doesn't necessarily mean bankruptcy. And Carvana could possibly meet its obligations without wiping out common stockholders. But the creditors' pact is a sign of an increasingly dire outlook.

Is Carvana a good stock to buy?

At the time of writing, Carvana's bonds maturing in 2030 trade for under half of their value, which suggests investors are skeptical about the company's ability to repay the loans. A cheap stock doesn't necessarily represent a good deal.

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