WeWork notes quiet on bankruptcy chatter; distressed index returns drop in October

By Cristal Cody

Tupelo, Miss., Nov. 1 – WeWork Inc.’s paper saw thin trading on Wednesday on the heels of news reports that the distressed company is planning an imminent bankruptcy filing.

WeWork’s paper has been thinly traded since the company missed interest payments on its bonds in October.

WeWork’s 7 7/8% senior notes due 2025 (CCC-/C) were last seen in mid-October at 2½ bid, a market source said.

S&P Global Ratings said on Wednesday it downgraded WeWork Cos. LLC to selective default on the company’s plan to enter a forbearance agreement with noteholders that was effective Monday.

WeWork’s stock (NYSE: WE) plunged more than 46% on Wednesday.

Stock indices all closed higher as Treasury yields pulled back after the Federal Reserve left rates unchanged.

Distressed returns ended October weak.

The S&P U.S. High Yield Corporate Distressed Bond index was in the minus for October returns after steady declines since the summer.

Month-to-date total returns ended October at minus 6.17%, compared to September returns of 0.55%.

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