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Why Carvana Was Bouncing Back Today

Why Carvana Was Bouncing Back Today

Shares of Carvana (NYSE: CVNA) were rallying Thursday, one day after the stock plunged on news that its major creditors had teamed up to negotiate with the online used car dealer, a sign that they were preparing for the company to go bankrupt. There was no specific news out on Carvana Thursday, but its recovery looked like a classic dead cat bounce. First, Apollo and Pimco, two of Carvana's biggest creditors that together hold $4 billion of its debt, signed a deal to work together in the event of a bankruptcy.