Vroom announces decision to enter a RSA with holders of its debt

Vroom (VRM) announced that it has made the strategic decision to enter into a Restructuring Support Agreement, RSA, with holders of an overwhelming majority of its outstanding funded debt and its largest stockholder. The parties to the RSA have agreed to pursue a comprehensive transaction that will restructure Vroom, Inc.’s outstanding funded debt, consisting of approximately $290 million of unsecured convertible senior notes due in 2026, into equity. Vroom, Inc. intends to voluntarily file a prepackaged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. Vroom, Inc. anticipates emerging promptly from the prepackaged Chapter 11 case at the end of 2024 or early 2025. Pursuant to the transaction, the Notes will be converted into new shares of common stock. Existing holders of Vroom common stock will exchange each existing share of common stock for one share of New Common Stock and one warrant to purchase a share of New Common Stock.