What's Going On With WeWork Shares Today?

WeWork Inc. WE opted not to make aggregate interest payments totaling about $37.3 million in cash and $57.9 million in additional PIK notes, both due on October 2, 2023.

The company affirmed that it has the liquidity to make the interest payments, and indicated the possibility of doing so in the future.

WE has 30 days grace period to pay the interest on the notes before it is considered a default. The company intends to use this grace time to talk with key stakeholders and save cash while working on its strategic plan.

Under the strategic plan, WeWork aims to optimize its real estate holdings and enhance its financial structure.

Earlier this year, the coworking behemoth, previously valued at $40 billion, witnessed its stock price plummet to less than $1 per share. This significant drop led the company to submit a going concern notice to the Securities and Exchange Commission (SEC).

"Our losses and negative cash flows from operating activities raise substantial doubt about our ability to continue as a going concern," WeWork disclosed in a recent SEC filing.

Price Action: WE shares are trading lower by 7.12% at $2.74 premarket on Tuesday.