Coworking company WeWork’s shares tanked Tuesday following news that it would be skipping payments on interest to the sum of $95 million.
As a result, WeWork stock sank 20% Tuesday morning.
According to WeWork, deferring the payments will give the company the chance to gain liquidity and negotiate with creditors as it attempts to turnaround its business.
The company went on to note in a securities filing that it has a 30-day grace period to resume the interest payments and that it supposedly has the cash on hand to do so.
