WeWork secures $682.5 mn financing in bankruptcy recovery efforts

WeWork announced securing commitments for up to $682.5 million in debtor-in-possession financing from select lenders, a few weeks after the shared office space provider filed for bankruptcy protection. The SoftBank-backed company aims to address over $4 billion in debt and unsustainable future rent costs through its bankruptcy plan. Facing challenges in profitability, WeWork, once the most valuable U.S. startup, grappled with diminished demand for its shared office spaces due to the increase in work-from-home trends following the pandemic. According to a regulatory filing on November 15, WeWork disclosed that it had executed a commitment letter with various parties, including Goldman Sachs International Bank, JPMorgan Chase Bank, and SoftBank Vision Fund 2. The debtor-in-possession financing could reach $682.5 million, contingent on specific conditions, and the parties have agreed to provide the financing individually rather than jointly. WeWork emphasised that the financing agreement is subject to certain conditions, including approval from the Bankruptcy Court. At the time of entering bankruptcy, court filings indicated that WeWork had approximately $164 million in cash on hand.