Shares of used car dealer Carvana (NYSE: CVNA), which have lost roughly 94% of their value over the past year, bounced back hard on Wednesday morning, rising 19.3% through 11 a.m. ET.

Investors are cheering a debt restructuring plan that the company announced this morning, whereby Carvana proposes to exchange a chunk of its long-term debt for up to $1 billion in new debt that won't come due for another five years.

The difference between Carvana's old debt and the new debt Carvana is proposing to issue -- "9%/12% Cash/PIK Toggle Senior Secured Second Lien Notes due 2028" -- is that the old debt is unsecured, while the new debt will be secured by "liens on certain assets and property owned by Carvana, LLC."

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Source Fool.com