WeWork, which was once one of the most profitable and widely spread co-working space company across the globe, has now filed for bankruptcy. The firm that was once a high-flying start-up valued at Rs. 4 lakh crores has been struggling in the aftermath of the pandemic.
WeWork had entered into agreements with massive majority of its secured note holders and it intended to trim “non-operational” leases.
While declaring bankruptcy, WeWork CEO David Tolley said in a press statement, “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.”
WeWork chief executive David Tolley said about 90% of the company’s lenders have agreed to convert their $3 billion of debt into equity. “Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet,” he said in a statement.
WeWork’s bankruptcy filing is limited to locations in the U.S. and Canada, it said.
WeWork India has emerged as one of the strongest units in the WeWork franchise, and is largely insulated from the bankruptcy as majority of it is owned by Embassy Group. The India unit makes money and doesn’t need external capital to operate, the India head said in a statement today.