Shareholders called to vote on Cazoo Group's liquidation bid

Shareholders in New York Stock Exchange listed Cazoo Group are to be asked to give approval for a voluntary winding up and liquidation of the company.

In a letter from its chief financial officer Gareth Purnell they are told it is likely they will get nothing for their shareholdings.

Cazoo Group, which is registered in the Cayman Islands tax haven, has invited shareholders to an extraordinary general meeting on July 2 to vote on its proposal got s voluntary winding up of the company and to appoint Teneo's David Soden and Neema Griffin as joint voluntary liquidators.

Soden is already a joint administrator of Cazoo's UK operation, and has already sold some of its assets to Cinch and G3 Remarketing while trying to secure a buyer for the Cazoo Marketplace operation.

Cazoo Group's board, including chairman Tim Isaacs who only joined the troubled firm in December 2023, has unanimously decided that a winding up is advisable "on the basis that it is unable to pay its debts", and it has urged shareholders to vote for the proposal. 

Purnell notes that holders of $200 million of senior secured notes, which are secured by a substantial proportion of Cazoo's assets, will have significant influence over all shareholder votes and their interests may differ from those other shareholders who will likely get nothing.

"The company does not expect that there will be any remaining proceeds for our shareholders," Cazoo adds.

It also notes the possibility that Cazoo's creditors will not receive a full recovery in connection with the winding up.

Last month AM-online reported that administrators had gone in to the indebted group despite it having abandoned its business model of selling its own used cars online to become an advertising marketplace for car dealers and consumers to sell and buy their cars.

The collapse of Cazoo cost hundreds of UK automotive retail workers their jobs.