Carvana (CVNA) shares fell sharply following reports of a liquidity crisis involving major investor Mark Walter. Walter reportedly faces a federal investigation into his investment empire.
He holds a Carvana stake worth approximately $2 billion through his firm, TWG Global. Delaware filings reveal that Walter pledged nearly the entire stake as collateral to Citigroup.
This arrangement prevents Walter from easily liquidating shares to raise cash. The situation shifts risk to a potential forced deleveraging by Citigroup, creating significant uncertainty for shareholders.