WeWork information for chapter

Workplace-sharing firm WeWork filed for Chapter 11 chapter safety in New Jersey federal courtroom Monday, saying that it had entered into agreements with the overwhelming majority of its secured observe holders and that it meant to trim “non-operational” leases.

The chapter submitting is proscribed to WeWork’s areas within the U.S. and Canada, the corporate stated in a press launch. WeWork reported whole money owed of $18.65 billion in opposition to whole property of $15.06 billion in an preliminary submitting.

“I’m deeply grateful for the assist of our monetary stakeholders as we work collectively to strengthen our capital construction and expedite this course of by the Restructuring Assist Settlement,” WeWork CEO David Tolley stated in a press launch. “We stay dedicated to investing in our merchandise, providers, and world-class group of staff to assist our group.

WeWork has suffered one of the spectacular company collapses in latest U.S. historical past over the previous few years. Valued in 2019 at $47 billion in a spherical led by Masayoshi Son’s SoftBank, the corporate tried and did not go public 5 years in the past.

The Covid pandemic triggered additional ache as many corporations abruptly ended their leases, and the financial stoop that adopted led much more purchasers to shut their doorways.

It disclosed in an August regulatory submitting that bankruptcy could be a concern.

WeWork debuted by a special purpose acquisition company in 2021 however has since misplaced about 98% of its worth. The corporate in mid-August announced a 1-for-40 reverse inventory cut up to get its shares buying and selling again above $1, a requirement for protecting its New York Inventory Change itemizing.

WeWork shares had fallen to a low of about 10 cents and had been buying and selling at about 83 cents earlier than the inventory was halted Monday.

Former co-founder and CEO Adam Neumann stated that the submitting was “disappointing.”

“It has been difficult for me to look at from the sidelines since 2019 as WeWork has did not make the most of a product that’s extra related in the present day than ever earlier than,” Neumann stated in an announcement to CNBC. “I imagine that, with the correct technique and group, a reorganization will allow WeWork to emerge efficiently.”

As lately as September, the corporate stated that it had been actively renegotiating leases and that it was “right here to remain.” WeWork firm had near $16 billion in long-term lease obligations, according to securities filings.

The corporate leases hundreds of thousands of sq. toes of workplace area in 777 areas all over the world, in accordance with its regulatory filings.

WeWork has engaged Kirkland & Ellis and Cole Schotz as authorized advisors. PJT Companions will function its funding financial institution, with assist from C Avenue Advisory Group and Alvarez & Marsal.

— CNBC’s Ari Levy contributed to this report.

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