Saying it will forgo paying $95 million in interest, WeWork's stock plummeted

Following its announcement a day earlier that it would not make two interest payments totaling over $95 million, WeWork's stock fell more than 20% on Tuesday morning.

The move comes two months after WeWork expressed “substantial doubt” about its ability to survive the next year and may raise questions about its bankruptcy. The embattled coworking company says the missed interest payment will give it time to negotiate with creditors and free up liquidity as it implements its turnaround plan to renegotiate leases and stop membership cancellations.

In August, the company reported $205 million in cash as of June. The first half of this year saw a $696 million net loss.

After failing to go public in 2019, WeWork struggled to recover from its $47 billion peak. IPO paperwork showed larger-than-expected losses and potential conflicts of interest with founder and CEO Adam Neumann. After going public two years later at a $9 billion valuation, the company has struggled to retain members, who pay to rent desks at WeWork's office spaces.