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Joe Raedle
Former Peloton Interactive (NASDAQ:PTON) CEO John Foley, “confronted repeated margin calls on cash he borrowed towards his Peloton holdings” earlier than departing the corporate he helped discovered, based on The Wall Avenue Journal.
The outlet reported on Tuesday that Goldman Sachs had requested Foley “a number of occasions” to supply collateral for private loans. Based on regulatory filings, the previous CEO pledged 3.5M shares of Peloton towards these loans. Amidst the inventory’s over 90% slide since that time, the worth of these shares fell from round $300M to round simply $30M and prompted the bankers’ requests.
Nonetheless, the reporting additionally clarified that Foley’s latest resignation from the corporate’s board was not motivated by his borrowing habits.
“I did not resign from the board as a result of I used to be underwater,” he instructed the Journal. “To the extent that I took on debt by Goldman, it was as a result of I’m bullish on Peloton and nonetheless am. It was and is a superb firm.”
Shares of Peloton (PTON) fell 0.88% in premarket buying and selling on Tuesday.
Learn extra on the corporate’s latest transfer to cut back its company headcount.
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