Vintage Wine Estates Inc (NASDAQ:VWE) shares are trading lower by 32.6% to $0.07 during Wednesday's session after the company announced a bankruptcy filing and a voluntary delisting and SEC deregistration.

What Happened?

Vintage Wine Estates and its subsidiaries have filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware. The company aims to address its debt obligations through this structured process while pursuing asset sales.

Facing severe financial challenges, VWE explored several options, ultimately deciding to monetize all assets to maximize value. The company has filed motions to continue operations and to seek approval for asset sale procedures.

VWE plans to secure a $60.5 million debtor-in-possession financing facility to support operations during restructuring. The bankruptcy filing has accelerated $310 million in outstanding loan obligations under its existing credit agreement, though payment enforcement is stayed under bankruptcy provisions.

The company will continue operating as a "debtor-in-possession," subject to court jurisdiction and bankruptcy regulations.

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According to data from Benzinga Pro, VWE has a 52-week high of $1.09 and a 52-week low of $0.06.