Cazoo to restructure with a debt-for-equity swap

Cazoo lenders will take control of the company’s shares as part of a deep financial restructuring.

It has been confirmed that $630m (£509m) of convertible notes will now be cancelled in exchange for $200m of new senior secured debt and new equity that will leave Viking Global Investors, a US-based fund, as its biggest shareholder.

Alex Chesterman founded and has run Cazoo since the start. He rapidly scaled its profile by sponsoring prominent sports teams such as Aston Villa and Everton, the Premier League football clubs.

Question are now being asked regarding Mr Chesterman's future with this debt-for-equity swap, with one debtholder saying on Tuesday evening that he could step down as chair once the new capital structure is in place.

Traditional motor dealers have said since the outset that the model whilst being of good design but was immensely over-valued. Covid certainly helped wth Cazoo's growth but customers are seeing many traditional dealers move into both an online and showroom based model.

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