Party City (NYSE:PRTY) stock has halted trading after the company filed for Chapter 11 bankruptcy protection.
The New York Stock Exchange halted trading of PRTY stock early this morning ahead of the bankruptcy news. The reason given for the halt is “news pending.” While that news has been released, shares still aren’t trading as of this writing.
It’s worth noting that PRTY stock has been on a wild ride these last couple of weeks. Investors flocked to the stock earlier this month when reports of a bankruptcy filing started to spread. This resulted in shares soaring higher alongside heavy trading.
Details of the PRTY Bankruptcy
According to a filing with the U.S. Securities and Exchange Commission (SEC) Party City intends to use the bankruptcy to reduce its debt. The company says that it’s already reached an agreement with its debtholders to reduce its total debt of $1.7 billion.
To go along with this, Party City says it has secured $150 million in funding. The company says it will use these funds to continue normal operations throughout the bankruptcy process.
Investors will also remember that PRTY stock is in danger of being delisted from the NYSE. An official warning was sent in December as the company’s shares are trading below the $1 minimum required for a listing.
Investors looking for more of the latest stock market news are in luck!
InvestorPlace is home to all of the most important stock market stories for Wednesday! A few examples include more details on PRTY stock, as well as the latest concerning Microsoft (NASDAQ:MSFT) and Zomedica (NYSEMKT:ZOM) shares. You can catch up on all of this news at the following links!
More Wednesday Stock Market News
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.