WeWork Shares Fall 25% After Company Skips Interest Payments
- Company will use grace period for talks with creditors
- Firm is in the process of renegotiating nearly all its leases
A WeWork location in New York.
Photographer: Bing Guan/BloombergThis article is for subscribers only.
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.