Why Loyalty Ventures (LYLT) Stock Is Crashing Today

Loyalty Ventures Inc LYLT filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of Texas.
The company also disclosed plans to delist its common stock from the Nasdaq voluntarily.
Earlier today, LoyaltyOne, Co subsidiary of the company, sought protection under the Companies Creditors Arrangement Act (Canada) with the Ontario Superior Court of Justice.
The company's board decided to delist and deregister after careful consideration of the company's current situation, including filing the chapter 11 cases. In addition, the board determined that it is in the company's best interest to withdraw the listing and registration to reduce the costs of compliance with the rules of the SEC and Nasdaq.
Concurrently, the Bank Of Montreal BMO agreed to acquire LoyaltyOne's AIR MILES Reward Program (AIR MILES) business. The financial terms of the transaction remain undisclosed.
The company believes that BMO's acquisition of AIR MILES would secure the program and better position AIR MILES to continue delivering its leading loyalty program to nearly 10 million Canadian collectors.
Price Action: LYLT shares traded lower by 58.4% at $0.24 premarket on the last check Friday.

Loyalty Ventures Files For Bankruptcy, Voluntary Delisting From Nasdaq BMO To Acquire AIR MILES Reward Program Business