Stellar Snippets
According to insights, WeWork, the co-working company, could file Chapter 11 bankruptcy very soon, as early as next week to be exact.
Chapter 11 bankruptcy enables a company to continue its operations while formulating a debt repayment plan.
Additionally, it supports a financial turnaround by providing access to a range of legal tools that can help.
On Wednesday morning, WeWork's shares experienced a sharp decline of over 50%. Throughout the year, the stock has witnessed a staggering 98% decrease in its value.
The company, as of June 30th of this year, had over $13 billion in long-term lease obligations and $2.9 billion of long-term borrowings.
WeWork said it would not be able to fulfill its obligations to a $6.4 million separate bond payment due Wednesday.
Wall Street Journal had reported on the filing, but a WeWork spokesperson decided not to comment.
In the wake of WeWork's latest restructuring, the company and its backers are currently attempting to decide on who will take the keys to the firm.