- WeWork has officially filed for Chapter 11 bankruptcy, listing over $18.6 billion of debts.
- The filing is limited to WeWork locations in the US and Canada.
- Prior to the filing its property portfolio spanned 777 location in 39 countries.
Last week we wrote about reports that WeWork was preparing to file for Chapter 11 bankruptcy. A week later, the property/technology company has done precisely that, listing over $18.6 billion of debts per TechCrunch.
In a company statement, CEO David Tolley explained that an estimated 90 percent of WeWork’s lenders have agreed to place its $3 billion of debt into equity.
“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,” he said.
Unpacking the forthcoming machinations, the company sated that it is, “filing with the Court a series of customary ‘First Day Motions’ to facilitate a smooth transition into the process and to support operations throughout its cases, which it expects to be approved in short order.”
“The Company will continue servicing its existing members, vendors, partners, and other stakeholders in the ordinary course of business. WeWork expects to have the financial liquidity to execute these proceedings and continue business in the ordinary course,” it continued.
It still remains to be seen how the bankruptcy will impact the company’s operations in other parts of the world, as the filing is limited to the US and Canada. As TechCrunch points out, the company’s business in India is performing well, and is insulated by this most recent action.
Closer to home, the impact is expected to be minimal too. Here MyBroadband reported that the local operations of WeWork is 100 percent owned by SiSebenza and is in no way affiliated with WeWork Global.
As such, the three WeWork-branded locations in South Africa (two in Johannesburg and one in Cape Town), should continue to operate as normal following the filing for bankruptcy.