2023-08-24 06:17:00
WeWork Inc. he is looking for advisers to help him with a restructuring as he struggles with a heavy debt load and poor financial performance, people with knowledge of the matter said.
The coworking giant has hired real estate consultant Hilco Global, and has once again turned to the firm Álvarez y Marsal and the law firm Kirkland & Ellis to advise it on its options, according to the people, who asked not to be named because the matter it is private. The company seeks to avoid filing for bankruptcy under Chapter 11 and restructure your debts out of courtsaid one of the people.
The WeWork’s ability to avoid filing for bankruptcy will depend in large part on whether it can terminate or renegotiate a substantial number of its leases in the most expensive markets.the people said.
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“We will continue to invest in our product offering while at the same time taking steps to reduce rental and leasing costs. Our members remain our priority and regardless of short-term actions we may take, we will continue to operate and serve them for the long term,” a WeWork representative said in a statement.
Representatives for Hilco, Alvarez and Kirkland did not respond to requests for comment.
La crisis de WeWork
WeWork this month told investors there are “substantial doubts” about its ability to stay in business. The company will focus over the next year on lowering rental costs, negotiating more favorable leases, increasing revenue and raising money, he said in a statement at the time.
The company went public through a combination with a special purpose acquisition company in 2021. In the past year, its stocks have plunged 97% and its debt has plunged into distress territorya few months after he reached a debt reduction agreement with some of his creditors.
Earlier this month, WeWork added four turnaround specialists—Paul Aronzon, Paul Keglevic, Elizabeth LaPuma and Henry Miller—to its board of directors.
Translated by Paola Torre.
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