Why Is Cyxtera Technologies (CYXT) Stock Down 19% Today?


  • Cyxtera Technologies (CYXT) stock is dropping on a bankruptcy update.
  • The company has secured funding from lenders.
  • However, heavy trading is pulling the shares lower.
CYXT Stock - Why Is Cyxtera Technologies (CYXT) Stock Down 19% Today?

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Cyxtera Technologies (NASDAQ:CYXT) stock is falling on Monday as the company continues with its bankruptcy filing.

Cyxtera Technologies announced its bankruptcy filing at the start of the prior week. This saw it and several of its direct subsidiaries seeking Chapter 11 relief. Following this, the company entered into a Senior Secured Superpriority Debtor-in-Possession Credit Agreement with a group of lenders.

With that agreement, Cyxtera Technologies is able to borrow up to $200 million. The agreement also allows for an interim $54 million to be borrowed. It will use these funds for working capital and other general corporate purposes, as well as transactions related to the bankruptcy and borrowing agreement.

How This Affects CYXT Stock Today

Investors aren’t happy about Cyxtera Technologies filing for bankruptcy in the first place. Today’s extra news isn’t helping matters, either, even though it contains details about its financing through the bankruptcy process.

As a result, shares of CYXT stock are seeing incredibly heavy trading today as investors sell their stakes. This has more than 7 million shares of the company’s stock changing hands as of this writing. That’s a massive jump from its daily average trading volume of about 4.8 million shares.

CYXT stock is down 18.8% as of Monday morning and is down 97.5% since the start of the year.

Investors looking for even more of the most recent stock market news will want to keep reading!

InvestorPlace is home to all of the hottest stock market coverage traders need to know about on Monday! That includes what’s happening with shares of Nio (NYSE:NIO), Xpeng (NASDAQ:XPEV), and Oncorus (NASDAQ:ONCR) stock today. You can catch up on all of this news at the links below!

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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.

Article printed from InvestorPlace Media, https://investorplace.com/2023/06/why-is-cyxtera-technologies-cyxt-stock-down-19-today/.

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