IronNet (OTCMKTS:IRNT) stock is taking a beating on Monday after the cybersecurity company filed for Chapter 11 bankruptcy protection.
IronNet is using the Chapter 11 bankruptcy to enact an asset sale as it liquidates its business. The company was initially planning for a Chapter 7 filing to accomplish this goal. However, investors provided it with the funds needed to conduct the liquidation through a Chapter 11 filing.
A series of problems kept IronNet from being able to avoid the Chapter 11 filing. That includes the company simply running out of money. This claim was made by its Chief Financial Officer in court documents.
Investors will remember that IronNet already laid off all of its employees in September. This came as it sought to pay back the $35 million it owes to creditors. Another notable event was the company planning to voluntarily delist shares from the New York Stock Exchange back in July. That resulted in a shift today that saw shares move from the NYSE to over-the-counter trading.
What This Means for IRNT Stock
IRNT stock isn’t in the best state alongside the bankruptcy filing. Considering its planning for a sale with this filing, investors aren’t likely to see IRNT stock stick around for much longer. That also explains why the company’s shares are losing value today. IRNT stock was down 63.6% as of Monday morning.
There’s plenty more stock market news that traders will want to know about down below!
We’ve got all of the hottest stock market news investors need to know about on Monday! A few examples include what’s happening with shares of LQR House (NASDAQ:LQR), AMC Entertainment (NYSE:AMC) and WeWork (NYSE:WE) stock today. All of that news is ready to go at the following links!
More Stock Market News for Monday
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- Can WeWork’s New Permanent CEO Save WE Stock?
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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.
