TWOU Stock Alert: 2U Plunges on Ch. 11 Bankruptcy Filing

Group 1 - 2U has filed for Chapter 11 bankruptcy, carrying $1 billion in debt and only $125 million in cash as of the end of Q1 [1][2] - The company's stock has plummeted approximately 70% following the bankruptcy announcement [1] - 2U specializes in online education partnerships with American colleges but has faced increased competition and rising marketing costs due to student avoidance of online courses [2] Group 2 - A deal with lenders holding about 87% of its debt will reduce the debt by 50% and provide $110 million in new capital [3] - The bankruptcy process is expected to be completed by the end of September, with the CEO stating that 2U will continue its operations and investments [3] - Following the Chapter 11 process, 2U is anticipated to become a private company, leading to the potential loss of value for existing shareholders [4]