Cazoo, the UK-based online car marketplace, is seeking assurances from holders of its USD 200m 2027 SSNs that they will not enforce on cash that Cazoo’s prospective liquidators will need to fund the winding-up of the business.

The company, which appointed Teneo as administrator last month, launched a consent solicitation for its bondholders on 12 June, according to a notice seen by Debtwire. The consent solicitation expires on 19 June.

Cazoo is asking holders of its in-default bonds to waive their right to enforce on cash that will fund the winding-up, and not to restrict the company’s access to the bank accounts holding that cash, according to the notice.

Cazoo plans a shareholder meeting on 2 July, when it will ask approval to put itself in a Cayman Islands winding-up process.

The firm said it anticipates GBP 470,000 will be required to complete the winding-up, though the winding-up funds can be increased by GBP 200,000 if the liquidator believes this is both “necessary and sufficient” to complete the winding up.

The waivers being sought only relate to the cash needed to fund the winding up. The consent solicitation requires 50% of noteholders by value to accede to the proposal to become effective. Kroll is acting as information and tabulation agent.

Cazoo’s USD 200m 2027 SSNs, paying 4% PIK-toggle or 2% cash interest, were issued as part of a restructuring concluded in late-2023, during which its USD 630m 2% 2027 convertible notes were part-equitized into 92% of Cazoo’s equity.

The New York-listed company was advised on the restructuring by investment bank Goldman Sachs and law firms Freshfields and Maple & Calder. Bondholders were advised by investment bank PJT Partners and law firm Weil.

Subsequent to the restructuring, Cazoo launched an M&A process to find a buyer for the company and its business, however this failed to attract an adequate offer, according to the notice. Cazoo then pivoted in March 2024 to a “marketplace model”.

The administrators continue to seek a sale of the realigned business or its assets, according to the notice. Cazoo last month sold its wholesale business to G3 , according to Sky News, as well as selling several assets to Constellation Automotive.