WeWork's latest CEO, Sandeep Mathrani, resigned last week, its shares plunged anew, and the company is now worth about $200 million, Business Insider reported. The stock, at 24 cents, is trading like WeWork is in big trouble. A better guide comes from the bond market, but the signs there are not very hopeful there, either. One of WeWork's bonds, which matures in 2025, recently traded at 56 cents on the dollar. In March, WeWork restructured some of its debt, giving itself more time to try to reach profitability. But rating agencies were unimpressed. S&P called the move “tantamount to default,” because lenders will get less than they were originally promised. Earlier this month, Fitch Ratings said the restructuring gives WeWork about 12 months of breathing room, but that depends on the company continuing to improve its operating performance. For the first quarter, WeWork reported an operating loss of $204 million and a net loss of $299 million. “The company is still burning cash,” the rating agency wrote. “Fitch expects the cash-flow burn to persist through 2023, and it is uncertain when the company can become cash-flow positive.” Fitch upgraded WeWork's issuer default rating to CCC-, which means that “default is a real possibility,” according to Fitch's guide. (Subscription required.)
