WeWork in talks with investors to restructure over $3 bln debt - NYT

March 08, 2023 09:43 AM AEDT | By Reuters
Follow us on Google News:

(Adds background, details from release)

March 7 (Reuters) - WeWork Inc is in talks with investors to restructure its outstanding debt of more than $3 billion and raise more cash, the New York Times reported on Tuesday.

Shares of the company rose about 5% in extended trading following the news.

The company, which offers workstations, private offices and customized floors, had enjoyed a pandemic-driven shift to flexible work outside traditional offices, but is now gearing up for a potential fallout from a likely economic downturn.

In February, WeWork

forecast

weak current-quarter revenue in a sign that its business was feeling the heat of mass layoffs as companies reduce their real estate footprint.

An infusion of cash would most likely give WeWork the hundreds of millions of dollars it needed to keep operating for at least a few years, the NYT report added, citing people with knowledge of the negotiations.

Yardi, a real estate software provider in Santa Barbara, California, is among the investors considering new investment in the company, the people told the newspaper.

WeWork did not immediately respond to a Reuters request for comment.

The report citing one of the people, said there is no guarantee that the WeWork deal will close, and even if it does, it could be weeks away.

Japan's SoftBank Group Corp, which is both WeWork's largest shareholder and its largest debtor, is playing a key role in the negotiations but is not expected to put any additional money into the company, the report said.

In January, the New York-based company also planned to eliminate about 300 roles across countries after announcing last year, it would exit about 40 underperforming U.S. locations due to high expenses and a strong U.S. dollar. (Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Maju Samuel)


Disclaimer

The above content is directly sourced from Reuters under a contractual arrangement. The content is being provided as a convenience and for informational purposes only; and does not constitute an endorsement or approval by Kalkine Media of any of the products, services, or opinions of the organization or individual. The user is apprised that Kalkine Media bears no responsibility for the accuracy, legality, or content of Reuters, any external sites, or for that of subsequent links. The user is requested to contact Reuters directly for answers to questions regarding the content. Please note that Kalkine Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.



We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK