“WeWork is planning to file for bankruptcy as early as next week,” The Wall Street Journal reported yesterday, citing people familiar with the matter.
WeWork filed an IPO form in August 2019 but didn’t go public until October 2021, when it merged with a special purpose acquisition company in a deal that valued it at about $9 billion.
A WeWork regulatory filing yesterday said that “lease renegotiations and the active discussions with key certain stakeholders in the Company’s capital structure are still ongoing,” necessitating the seven-day extension.
Reuters quoted CI Roosevelt Private Wealth Senior Portfolio Manager Jason Benowitz as saying, “Whether or not WeWork can reach a short-term accommodation with bondholders to stave off a near-term bankruptcy, it likely holds many long-term office leases that will need to be restructured or written off.”
“Excess supply in commercial real estate, increasing competition in flexible space and macroeconomic volatility drove higher member churn and softer demand than we anticipated, resulting in a slight decline in memberships,” CEO David Tolley said.
WeWork told the paper that the seven-day extension “provides time to continue in the positive conversations with our key financial stakeholders and engage with them to implement our ongoing strategic efforts to enhance our capital structure.”
The original article contains 715 words, the summary contains 204 words. Saved 71%. I’m a bot and I’m open source!
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“WeWork is planning to file for bankruptcy as early as next week,” The Wall Street Journal reported yesterday, citing people familiar with the matter.
WeWork filed an IPO form in August 2019 but didn’t go public until October 2021, when it merged with a special purpose acquisition company in a deal that valued it at about $9 billion.
A WeWork regulatory filing yesterday said that “lease renegotiations and the active discussions with key certain stakeholders in the Company’s capital structure are still ongoing,” necessitating the seven-day extension.
Reuters quoted CI Roosevelt Private Wealth Senior Portfolio Manager Jason Benowitz as saying, “Whether or not WeWork can reach a short-term accommodation with bondholders to stave off a near-term bankruptcy, it likely holds many long-term office leases that will need to be restructured or written off.”
“Excess supply in commercial real estate, increasing competition in flexible space and macroeconomic volatility drove higher member churn and softer demand than we anticipated, resulting in a slight decline in memberships,” CEO David Tolley said.
WeWork told the paper that the seven-day extension “provides time to continue in the positive conversations with our key financial stakeholders and engage with them to implement our ongoing strategic efforts to enhance our capital structure.”
The original article contains 715 words, the summary contains 204 words. Saved 71%. I’m a bot and I’m open source!