AgileThought (NASDAQ:AGIL) stock is taking a beating on Tuesday after the IT services company filed for Chapter 11 bankruptcy protection.
AgileThought filed for bankruptcy as part of a restructuring plan. It intends to stay in bankruptcy for 90 days while it undergoes the restructuring. During that time, it will continue normal operations thanks to $22 million in financing from Blue Torch.
To go along with that, a subsidiary of Blue Torch has agreed to acquire all of AgileThought’s assets as a stalking-horse buyer. If this goes through, it would result in Blue Torch acquiring AgileThought and the company going private.
Manuel Senderos, CEO of AgileThought, said the following about the deal with Blue Torch:
“This strategic financial reorganization will pair our already robust and thriving organization with a capital structure that matches, and this move will allow us to operate even more efficiently. Post-reorganization, we will emerge with significantly reduced debt and a private ownership structure, fortifying an even stronger and healthier AgileThought.”
What’s Next for AGIL Stock?
Considering the plans outlined in the bankruptcy filing, it seems unlikely that shares of AGIL stock will remain public for much longer. Going private would take the stock off the public market if Blue Torch does indeed buy the company’s assets.
AGIL stock is down 15.6% as of Tuesday morning and down 95.5% year-to-date (YTD) as of Monday’s close.
Investors can find even more of the most recent stock market news worth reading about down below!
We’ve got insight into all of the latest stock market stories traders need to know about on Tuesday! A few examples include what’s lifting shares of Shineco (NASDAQ:SISI) and Tivic Health Systems (NASDAQ:TIVC) stock higher, as well as a breakdown of the biggest pre-market stock movers this morning. All of that news is ready to go at the following links!
More Tuesday Stock Market News
- Why Is Shineco (SISI) Stock Up 40% Today?
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- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
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On the date of publication, William White did not hold (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.
