2U (NASDAQ:TWOU) stock is taking a beating on Thursday after the online education company filed for Chapter 11 bankruptcy.
2U is entering bankruptcy protection as part of a Restructuring Support Agreement with lenders. This will provide it with $110 million of new capital to continue operations. It will also reduce the company’s debt by more than 50% to $459 million.
2U notes that it doesn’t expect to remain in bankruptcy for long. The company says that its current goal is to exit bankruptcy by the end of September. It’s also seeking court approval for $64 million in financing that will allow it to keep operating throughout the bankruptcy process.
2U CEO Paul Lalljie said the following about the bankruptcy:
“New capital and a healthier balance sheet will enable us to continue our long-standing mission […] The steps we are taking today will enable us to continue investing in our offerings, services, and world-class team to deliver unparalleled online learning to meet the needs of students today.”
TWOU Stock Movement Today
Investors aren’t excited about 2U filing for Chapter 11 bankruptcy protection. As a result, the company’s shares are down 70.6% as of Thursday morning. That comes with some 368,000 shares traded, as compared to a daily average of about 83,000 shares.
Investors will also remember that 2024 has been a rough year for 2U. This had the stock down 88.3% year-to-date when markets closed on Wednesday.
There are more stock market stories traders will want to read about today!
We have all of them ready to go with our stock market coverage for Thursday! A few examples include what’s happening with shares of Tivic Health Systems (NASDAQ:TIVC) and Psyence Biomedical (NASDAQ:PBM) stock, as well as the biggest pre-market stock movers this morning. All of this news is ready at the links below!
More Thursday Stock Market News
- Why Is Tivic Health Systems (TIVC) Stock Up 44% Today?
- Why Is Psyence Biomedical (PBM) Stock Up 163% 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 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
