- WeWork Inc. (NYSE:WE) has filed for Chapter 11 bankruptcy protection, listing nearly US$19 billion of debts
- In its filing, the office-sharing company listed assets of US$15 billion and in its news statement released this week, stated plans to file recognition proceedings in Canada
- WeWork has signed a restructuring support agreement with holders representing 92 per cent of its secured notes to drastically reduce the company’s existing funded debt and expedite the restructuring process
- WeWork Inc. stock has been halted at $0.83 per share
WeWork Inc. (NYSE:WE) has filed for Chapter 11 bankruptcy protection, listing nearly US$19 billion of debts.
In its filing, the office-sharing company listed assets of US$15 billion and in its news release this week, stated plans to file recognition proceedings in Canada. Its locations outside of the U.S. and Canada are not part of this process and its global franchisees are not affected by these proceedings.
WeWork has signed a restructuring support agreement with holders representing 92 per cent of its secured notes to drastically reduce the company’s existing funded debt and expedite the restructuring process.
“We defined a new category of working, and these steps will enable us to remain the global leader in flexible work,” David Tolley, CEO of WeWork, said in a news release. “I am deeply grateful for the support of our financial stakeholders as we work together to strengthen our capital structure and expedite this process through the Restructuring Support Agreement. We remain committed to investing in our products, services, and world-class team of employees to support our community.”
Tolley had been CEO of the company since only October 2023, as part of its strategic transformation efforts after its 1-for-40 reverse stock split in August, shortly after reporting an $849 million drop in revenue from Q2 2022 to Q2 2023.
Since 2019, Japan’s SoftBank has invested billions of dollars in its turnaround and acquired majority control over the company to keep it afloat. Its business took a significant downturn as commercial real estate prices and borrowing prices outpaced its office-sharing business, coupled with the shifting dynamic for millions of workers now checking into their offices remotely.
The company intends to continue servicing its existing members, vendors, partners and other stakeholders in the ordinary course of business.
WeWork Inc. is a global flexible workspace provider with 21 Canadian locations including Montreal, Vancouver, Toronto and Calgary. The company is engaged in delivering technology-driven turnkey solutions, flexible spaces, and community experiences. Its product offerings included Core space-as-a-service, WeWork All Access, WeWork on Demand, and WeWork Workplace.
WeWork Inc. stock has been halted at $0.83 per share.
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