Why 2U (TWOU) Stock Is Down 60% Today
Portfolio Pulse from Henry Khederian
2U Inc (NASDAQ:TWOU) shares plummeted by 61% to $1.58 after the company filed for Chapter 11 bankruptcy to facilitate a Restructuring Support Agreement. The restructuring aims to improve the company's balance sheet, securing $110 million in new capital and reducing its debt by over 50%. The company will continue normal operations during this period and expects to emerge as a private entity by September.
July 25, 2024 | 4:53 pm
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2U Inc (NASDAQ:TWOU) shares dropped 61% after the company filed for Chapter 11 bankruptcy to facilitate a Restructuring Support Agreement. The restructuring aims to improve the balance sheet, securing $110 million in new capital and reducing debt by over 50%. The company will continue normal operations and expects to emerge as a private entity by September.
The filing for Chapter 11 bankruptcy and the significant drop in share price indicate a negative short-term impact on TWOU. The restructuring aims to improve the company's financial health, but the immediate market reaction is highly negative.
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