Latest news with #debtres restructuring
Zawya
02-07-2025
- Business
- Zawya
Ethiopia agrees debt restructuring memorandum with official creditors, state news agency says
Ethiopia has agreed a memorandum of understanding with its Official Creditor Committee on debt restructuring, the government's official news agency said on Wednesday. The memorandum formalises the debt restructuring agreed in principle in March this year and offers relief of over $3.5 billion, the Ethiopian News Agency said. (Reporting by George Obulutsa; Editing by Alexander Winning)
Yahoo
26-06-2025
- Automotive
- Yahoo
From Ashes to Glory: Is Carvana's Premium Valuation Worth It?
From being on the brink of collapse in 2022, used car e-retailer Carvana Inc. CVNA has staged a remarkable comeback. The stock rocketed more than 1000% in 2023 and tacked on another 284% last year. The momentum doesn't seem to be stopping. So far this year, the stock has surged 59%, handily outperforming the broader industry as well as peers like CarMax KMX and Lithia Motors LAD. In fact, shares of CarMax and Lithia Motors fell 15% and 5%, respectively, over the same timeframe. Image Source: Zacks Investment Research Much of this turnaround can be traced back to Carvana's 2023 debt restructuring and its strategic pivot toward efficiency over aggressive growth. The company has been steadily delivering on its promises—and it's showing up in the numbers. Today, Carvana boasts the highest adjusted EBITDA margin among public car dealers at 11.5%, far ahead of its peers. Image Source: Carvana, Inc. On the valuation front, Carvana is trading at a forward sales multiple of 3.41—well above the industry levels as well as its own five-year average. In contrast, CarMax and Lithia Motors trade at just 0.38X and 0.22X, respectively. Image Source: Zacks Investment Research Yes, Carvana looks expensive. But its premium also reflects its high growth expectations and improving profitability. CVNA is targeting a 13.5% adjusted EBITDA margin and hopes to sell 3 million cars annually within the next 5 to 10 years. It's a bold goal— and a sign of confidence in its business model and potential to run more efficiently over time. If Carvana keeps executing, its lofty valuation might just be justified. Carvana has grown into the second-largest used car retailer in the United States—and it has done so by rewriting the rules of auto retail. Instead of building a network of physical dealerships like traditional players, Carvana has embraced a fully digital model that lets buyers shop, finance and even arrange delivery—all online. Carvana's car vending machines are the first fully automated, coin-operated car pick-up centers in the country, offering customers a memorable and tech-forward way to collect their vehicles. Behind the scenes, Carvana's performance has picked up serious momentum. The company beat earnings expectations for four straight quarters, consistently selling over 100,000 retail units per quarter. In its last reported quarter, retail sales jumped 46% year over year, and earnings per share more than doubled. Management is confident this strength will continue through the year. The key reason for the turnaround is Carvana's focus on efficiency. The company has streamlined its operations — from trimming down reconditioning and transport processes to optimizing staff and using its own logistics tech to move inventory smarter. This has helped boost margins. In the last quarter, adjusted EBITDA hit a record $488 million. Gross profit per unit also improved by 8%, highlighting both pricing strength and cost control. A key piece of its strategy is the acquisition of ADESA's U.S. operations. This move has supercharged Carvana's ability to recondition and prepare cars for sale. Once fully scaled, it could help Carvana boost its annual reconditioning capacity to 3 million units — more than double today's level. If there's one concern, it's the balance sheet. As of March 2025, Carvana carried $5.26 billion in long-term debt versus $1.8 billion in cash, resulting in a high debt-to-capital ratio of 0.75. That adds financial risk. Still, for investors willing to accept some leverage, Carvana offers a compelling growth story. Its asset-light model, tech-driven approach and improving margins make a strong case for its long-term potential. The Zacks Consensus Estimate for CVNA's 2025 sales and EPS implies year-over-year growth of 32% and 214%, respectively. The EPS estimates for 2025 and 2026 have moved north in the past 90 days. Image Source: Zacks Investment Research Carvana's multiple is undeniably rich, yet rising margins and upward estimate revisions give that premium real support. If management keeps hitting its targets while cutting debt, the valuation can stay credible. The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CarMax, Inc. (KMX) : Free Stock Analysis Report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
25-06-2025
- Business
- Zawya
Ghana approves $2.8bln debt relief deal with creditor nations
Ghana's parliament approved a $2.8 billion debt restructuring deal late Tuesday with 25 creditor nations, including China and France, aiding disbursements under an IMF bailout programme to alleviate the country's worst economic crisis in decades. The West African nation, the world's second-largest cocoa producer, signed a memorandum of understanding with its creditors in January after defaulting on most of its external debt in December 2022. The 25 participating creditor countries also include the United States, Germany, and the United Kingdom, demonstrating broad international support for Ghana's economic recovery. The International Monetary Fund (IMF) approved a $3 billion, three-year bailout for Ghana in May 2023 that helped stabilise Ghana's economy and led to a Fitch rating revision. "The terms of the debt treatment offer a debt service relief of $2.8 billion during the Fund-supported programme period (2023-2026)," a parliamentary report seen by Reuters said. Under the restructuring terms, debt service payments due between December 20, 2022, and December 31, 2026, will be rescheduled, capitalised, and repaid from 2039 to 2043, delaying repayments by over 15 years, the report said. The Official Creditor Committee set interest rates at 1% to 3% to capitalise rescheduled amounts, depending on the original contractual rate, offering Ghana's treasury savings below market levels, the report said. "The Committee noted that the debt restructuring was critical in supporting government to restore and sustain macroeconomic stability and debt sustainability," the report concluded, with lawmakers unanimously recommending approval. Ghana continues negotiations with commercial creditors to complete its debt restructuring.
Reuters
25-06-2025
- Business
- Reuters
Ghana approves $2.8 billion debt relief deal with creditor nations
ACCRA June 25 (Reuters) - Ghana's parliament approved a $2.8 billion debt restructuring deal late Tuesday with 25 creditor nations, including China and France, aiding disbursements under an IMF bailout programme to alleviate the country's worst economic crisis in decades. The West African nation, the world's second-largest cocoa producer, signed a memorandum of understanding with its creditors in January after defaulting on most of its external debt in December 2022. The 25 participating creditor countries also include the United States, Germany, and the United Kingdom, demonstrating broad international support for Ghana's economic recovery. The International Monetary Fund (IMF) approved a $3 billion, three-year bailout for Ghana in May 2023 that helped stabilise Ghana's economy and led to a Fitch rating revision. "The terms of the debt treatment offer a debt service relief of $2.8 billion during the Fund-supported programme period (2023-2026)," a parliamentary report seen by Reuters said. Under the restructuring terms, debt service payments due between December 20, 2022, and December 31, 2026, will be rescheduled, capitalised, and repaid from 2039 to 2043, delaying repayments by over 15 years, the report said. The Official Creditor Committee set interest rates at 1% to 3% to capitalise rescheduled amounts, depending on the original contractual rate, offering Ghana's treasury savings below market levels, the report said. "The Committee noted that the debt restructuring was critical in supporting government to restore and sustain macroeconomic stability and debt sustainability," the report concluded, with lawmakers unanimously recommending approval. Ghana continues negotiations with commercial creditors to complete its debt restructuring.
Irish Times
19-06-2025
- Business
- Irish Times
Paul Coulson offered $250m to walk away from Ardagh amid crunch debt talks
Businessman Paul Coulson has been offered $250 million (€218 million) by bondholders in Ardagh Group to walk away from the packaging empire he built over the past 25 years, as debt restructuring talks enter a crunch phase. The offer would see Mr Coulson cede control of the glass and metal containers giant, which has about $12.5 billion of borrowings, and abandon previous notions of retaining control of its prized Ardagh Metal Packaging (AMP) arm, the sources said. The proposal is one of a number of potential debt solutions under discussion in parallel with the company, a source said. All involve substantially addressing about $2.5 billion of bonds that fall due in August 2026 and would involve the injection of new money into the business, the source added. Bloomberg first reported the offer for Mr Coulson to hand over entire control of Ardagh Group to certain bondholders, indicating it is the most likely outcome even as a number of alternatives remain in play. READ MORE Under the proposal, unsecured creditors would take a majority stake in the group after the overhaul, Bloomberg reported. Secured creditors would have their debt reinstated at par, and receive a double-digit coupon, it said. A spokesman for Ardagh Group declined to comment on the current state of talks. [ Ardagh talks with creditor group break down over improving cans unit Opens in new window ] The development comes weeks after Ardagh Group walked away from talks with unsecured bondholders, who were being asked by the group to write off much of the $2.32 billion they are owed in exchange for taking full ownership of the glass containers part of the business. Mr Coulson had envisaged Ardagh Group spinning its shares the valuable AMP division into a new company (NewCo) that would be 80 per cent owned by Mr Coulson and other existing Ardagh Group shareholders. He proposed that unsecured creditors would only receive 20 per cent of the division. Ardagh Group currently owns 76 per cent of New York-listed AMP. Bobby Healy on why Manna drone delivery could be the 'biggest technology company in the world for its space' Listen | 67:08 Ardagh Group, which Mr Coulson built into one of the world's largest packaging companies through a series of debt-fuelled acquisitions, said more than a year ago that it was considering options to lower its $12.5 billion debt pile. The burden had become increasingly unsustainable in recent years amid weaker-than-expected earnings. Talks with the senior unsecured creditors became more complicated when Ardagh Group said in April that the beverage cans unit had turned a corner', helped by a rebound in activity across the energy drinks, sparkling water and health and wellness categories. [ Ardagh enlists restructuring experts to board as it looks to cut €12bn debt Opens in new window ] AMP reported its revenues grew by 11 per cent year-on-year in the first quarter to $1.27 billion and upgraded its full-year earnings forecast. However, Ardagh Group's legacy glass business saw its revenues drop 6.7 per cent to $961 million during the quarter as this arm of the group continued to struggle. Meanwhile, holders of some $1.8 billion of risky bonds issued by a holding company above the operating Ardagh Group are expected to lose almost all of what they are owed. These bonds are currently trading at about 4 per cent of their original value. Mr Coulson controls Ardagh Group through an 18.8 per cent direct stake in its ultimate parent company and a 52.4 per cent interest in a vehicle called Yeoman Capital, which owns 33.9 per cent of the group. He effectively owns 36.6 per cent of the equity in a business that traces its roots to the Irish Glass Bottle Company, founded in Dublin in 1932.
