WeWork Inc. shares slid 25% on Tuesday morning to their lowest price on record after the company skipped interest payments due on five of its bonds.
(Bloomberg) — WeWork Inc. shares slid 25% on Tuesday morning to their lowest price on record after the company skipped interest payments due on five of its bonds.
The co-working firm withheld $37.3 million of cash and $57.9 million of in-kind payments on the notes, according to a regulatory filing, kicking off a 30-day grace period before a default. It said it had enough liquidity to make the payments and may elect to do so in the coming weeks.
WeWork said it will use the grace period to negotiate with creditors and preserve cash. Last month, the struggling firm said it was renegotiating nearly all of its leases, and earlier said there was “substantial doubt” about its ability to continue operations.
The New York-based company finds itself in trouble again after cutting a debt restructuring deal earlier this year that slashed its obligations. The bonds WeWork skipped payments on trade at distressed levels of as low as 9 cents on the dollar, according to Trace and data compiled by Bloomberg.
The shares sunk as much as 74 cents to $2.21, giving the company a market value of less than $120 million.
(Updates throughout with share prices.)
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