How screwed is WeWork? Fitch thinks default is a real possibility

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Will WeWork file for bankruptcy? One of its bonds trades at 56 cents on the dollar, and Fitch Ratings thinks default is a real possibility.

One of its bonds trades at 56 cents on the dollar, and Fitch thinks default is a real possibility. 's latest CEO, Sandeep Mathrani, resigned earlier this week, and its shares plunged anew. The company is now worth about $200 million.

One of WeWork's bonds, which matures in 2025, recently traded at 56 cents on the dollar, according to Bloomberg data. A healthy company's debt often trades at 100 cents on the dollar, or at a very slight discount. , giving itself more time to try to reach profitability. But rating agencies were unimpressed. S&P called the move"tantamount to default," because lenders will get less than they were originally promised.

Fitch upgraded WeWork's issuer default rating to 'CCC-', in a nod to the debt restructuring. However, a CCC rating from this agency means"default is a real possibility," according to"Through the recently completed debt restructuring of our balance sheet, WeWork significantly de-levered its balance sheet, eliminating $1.

 

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