Troika Media Group (NASDAQ:TRKA) stock is taking a beating on Thursday after the company filed for Chapter 11 bankruptcy protection.
Troika Media Group notes that this bankruptcy filing is voluntary and was made to allow for a strategic restructuring of the company. That includes plans for Blue Torch Finance LLC to acquire the company in a stalking horse bid.
Troika Media notes that its secured lenders are supporting this plan. This has them providing it with $11 million of debtor-in-possession financing. These funds will be used to continue running the business through the bankruptcy period.
Grant Lyon, interim CEO of Troika Media Group, said the following about the bankruptcy:
“We expect that the process will be relatively short and that the Company will have adequate liquidity to operate the Converge business normally throughout the process. We anticipate that the Company will emerge from Chapter 11 as a private company with a stronger balance sheet.”
How This Affects TRKA Stock Today
News of the bankruptcy brings with it heavy trading of TRKA stock and investors selling the shares. That has some 2 million shares on the move as of this writing. For the record, the company’s daily average trading volume is closer to 509,000 shares.
TRKA stock is down 76.5% as of Thursday morning.
Investors who are looking for more of the hottest stock market news are in luck!
We have all of the biggest stock market stories worth reading about on Thursday! A few examples include what’s got Altisource Asset Management (NYSEMKT:AAMC) and Hempacco (NASDAQ:HPCO) stock up, as well as the biggest pre-market stock movers this morning. All of that news is ready to go below!
More Thursday Stock Market News
- Why Is Altisource Asset Management (AAMC) Stock Up 24% Today?
- Why Is Hempacco (HPCO) Stock Up 56% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
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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.
