WeWork (NYSE: WE) is withholding further interest payments on some of its outstanding notes as it looks to improve its balance sheet.
The company indicated this morning that it will be withholding payments of $6.4 million on notes due 2025, which is due on November 1. The failure to make a payment will begin a 30-day grace period for the company.
The delay is follows an arrangement with creditors for a delay on October 2 for $95 million worth of interest payments on some of its notes due 2027. Yesterday the company entered into a seven day forbearance agreement related to these notes, following the grace period for these notes coming to an end.
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The withholding of payments follows reports last week from Bloomberg that WeWork is considering filing for bankruptcy in November, with the top backers of the company such as SoftBank and King Street Capital fighting over who gets to take control of the failing co-working company.
WeWork last traded at $2.34 on the NYSE.
Information for this briefing was found via Reuters, Bloomberg, and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
