Cyxtera Technologies (NASDAQ:CYXT) stock is falling hard on Monday after the data center company revealed a bankruptcy filing.
Cyxtera Technologies is using a Chapter 11 bankruptcy filing to facilitate its ongoing restructuring plan. It’s doing so after reaching a Restructuring Support Agreement with certain lenders holding more than two-thirds of its outstanding loan.
The process has the company acquiring a commitment for $200 million in debtor-in-possession financing from some lenders. The company will use these funds to operate through the restructuring and afterward as well.
While Cyxtera Technologies expects the bankruptcy to strengthen its financial position and deleverage its balance sheet, it isn’t giving up on a sale. The company has been actively seeking a buyer or a major commitment from a new investor.
Nelson Fonseca, CEO of Cyxtera Technologies, said the following about the bankruptcy filing:
“We have thoroughly evaluated options to enhance value for the Company and our stakeholders. Together with our Lenders, we determined that initiating this process is the best path forward for Cyxtera and our stakeholders as we pursue new opportunities for growth.”
CYXT Stock Movement Today
As investors would expect, shares of CYXT stock are taking a beating with the bankruptcy news. That comes alongside some 1.55 million shares changing hands as of this writing. For comparison, the company’s daily average trading volume is about 1.6 million shares.
CYXT stock is down 26.9% as of Monday morning.
Anyone looking for more of the latest stock market news will want to stick around!
We have all of the biggest stock market stories traders need to know about on Monday! That includes what’s happening with shares of Mallinckrodt (NYSEMKT:MNK), Chijet Motor (NASDAQ:CJET), and Forza X1 (NASDAQ:FRZA) stock today. All of that news is ready to go at the links below!
More Monday Stock Market News
- Why Is Mallinckrodt (MNK) Stock Down 23% Today?
- Why Is Chijet Motor (CJET) Stock Up 54% Today?
- Why Is Forza X1 (FRZA) Stock Up 145% Today?
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risk.
Read More: Penny Stocks — How to Profit Without Getting Scammed
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.
