Versatile-office-space agency WeWork has filed for Chapter 11 chapter safety, a surprising change in fortune for the as soon as high-flying startup co-founded by Adam Neumann and bankrolled by SoftBank, BlackRock and Goldman Sachs.

The New York-based agency, which raised over $22 billion, has listed each property and liabilities within the vary of $10 billion to $50 billion in its petition filed in a New Jersey federal courtroom. Its chapter submitting is restricted to places within the U.S. and Canada, it stated.

WeWork India has emerged as one of many strongest models within the WeWork franchise, and is essentially insulated from the chapter as majority of it’s owned by Embassy Group. The India unit makes cash and doesn’t want exterior capital to function, India head informed native media final week.

WeWork’s preliminary public providing confronted setbacks in 2019 attributable to issues over losses and governance, resulting in the withdrawal of its IPO and the exit of chief government Neumann. Neumann’s departure led to a expensive settlement with WeWork and SoftBank in 2021. The corporate ultimately went public through a SPAC merger, valuing it at $9 billion, and forecasted $2 billion in money working revenue by 2024.

A nonetheless from WeCrashed, a TV present produced by Apple. The spectacular rise and fall of WeWork has additionally been topic of a number of books and TV reveals. (Picture: Apple)

WeWork restructured its stability sheet this 12 months, lowering debt by $1.5 billion and delaying debt maturities to 2027. Regardless of these efforts, the agency’s market worth has plummeted to lower than $50 million, and chapter might result in the cancellation of current shareholder shares, with bonds now buying and selling at distressed ranges.

“Now could be the time for us to tug the longer term ahead by aggressively addressing our legacy leases and dramatically enhancing our stability sheet,” WeWork chief government David Tolley stated in a press release.

“We outlined a brand new class of working, and these steps will allow us to stay the worldwide chief in versatile work. I’m deeply grateful for the assist of our monetary stakeholders as we work collectively to strengthen our capital construction and expedite this course of by way of the Restructuring Help Settlement. We stay dedicated to investing in our merchandise, companies, and world-class crew of workers to assist our neighborhood.”

In its earnings disclosure in August, WeWork publicly acknowledged “substantial doubts” about its means to proceed.

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