View (NASDAQ:VIEW) stock is falling hard on Wednesday after the company filed for Chapter 11 bankruptcy protection as a way to go private.
View filed for Chapter 11 in order to enact a restructuring of the company. This will also see it be financed by Cantor Fitzgerald, L.P. and RXR. As a result, the company will come out of bankruptcy as a private business.
View will continue normal operations throughout the bankruptcy process. The company also expects to exit bankruptcy within 45 days of its Tuesday filing. It believes this reorganization will improve its balance sheet and better position it for the future.
With this deal with Cantor Fitzgerald, L.P. also comes changes to its leadership team. This will see it become a private company with a reorganized board of directors. Cantor Fitzgerald chairman and CEO Howard Lutnick and RXR chairman and CEO Scott Rechler will also support the company.
View CEO Rao Mulpuri said the following about the news:
“Today’s announcement marks the culmination of a thorough strategic review of our business operations to help ensure we have the proper capital structure going forward. With the support of Cantor Fitzgerald and RXR, we intend to maximize our business potential with increased financial stability and be better positioned to increase our presence across the real estate ecosystem.”
What This Means for VIEW Stock
Going private means that shares of VIEW stock won’t trade on the public market anymore. It’s also one of the reasons for the fall of the company’s shares today, alongside the bankruptcy news.
This has VIEW stock seeing strong trading today. As of this writing, more than 136,000 shares have changed hands. That’s closing in on its daily average trading volume of about 177,000 shares.
VIEW stock is down 61.8% as of Wednesday morning.
There are more stock market stories worth reading below!
We offer all of the hottest stock market coverage traders need for Wednesday! A few examples include the trade of the day, Ballard Power Systems (NASDAQ:BLDP), and why shares of Aesthetic Medical (NASDAQ:AIH) and LAMF Global Ventures (NASDAQ:LGVC) stock are up this morning. All of that news is available at the following links!
More Wednesday Stock Market News
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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.
