Embattled co-working space provider WeWork says it expects to emerge from bankruptcy by the end of May, touting lease-restructuring efforts that it estimates will bring $8 billion in future rental savings.
FILE - The WeWork logo is seen at one of the company's offices, Jan. 16, 2020, in New York. WeWork expects to emerge from bankruptcy by the end of May 2024, the embattled co-working space provider said this week, as the company pointed to lease restructuring efforts set to bring in an estimated $8 billion in future rental savings. In an update Tuesday, April 2, 2024, WeWork said it had determined a final path forward 90% of the locations in the company's global real estate portfolio.
Cutting back on real estate costs has been a top priority for WeWork since the New York-based company filed forin November. At the time, WeWork said that rental liabilities accounted for about two-thirds of its operating costs as it tried toIn an update Tuesday, WeWork said it had “determined a final path forward” at 90% of the company's about 500 wholly owned locations in its global real estate portfolio, including through agreements to amend or reject leases.
WeWork also said it had reached an agreement with holders representing 92% of its secured notes to eliminate more than $3 billion in debt obligations. Over the course of bankruptcy proceedings, WeWork made headlines for withholding hefty rent payments to landlords as it attempted to renegotiate leases. Lawyers for some landlords pushed back in court, saying the moves violated bankruptcy rules,over its ability to remain in business. Beyond the mounting need to cut back on its real estate portfolio, WeWork pointed to increased member churn and financial losses.
The specter of bankruptcy had hovered over WeWork for some time, with experts previously pointing to the price of the company's aggressive expansion in its early years. WeWorkin October 2021 after its first attempt to do so two years earlier collapsed spectacularly. The debacle led to theCopyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
NYPD Purchases Expensive AI Metal Detectors That May or May Not Actually WorkScience and Technology News and Videos
Read more »
Republicans see embattled Menendez's potential independent bid as chance to flip Senate seatSen. Bob Menendez's potential independent Senate bid presents what some Republican candidates believe to be their best shot at earning a seat in decades.
Read more »
Former Hungarian insider releases audio he says is proof of corruption in embattled Orbán governmentA former Hungarian government insider has published an audio recording that he says is proof of official misconduct within high levels of the government of populist Minister Viktor Orbán.
Read more »
Former Hungarian insider releases audio he says is proof of corruption in embattled Orbán governmentA former Hungarian government insider has published an audio recording that he says is proof of official misconduct within high levels of the government of populist Minister Viktor Orbán
Read more »
Former Hungarian insider releases audio he says is proof of corruption in embattled Orbán governmentA former Hungarian government insider has published an audio recording that he says is proof of official misconduct within high levels of the government of populist Minister Viktor Orbán.
Read more »
Former Hungarian insider releases audio he says is proof of corruption in embattled Orbán governmentA former Hungarian government insider has published an audio recording that he says is proof of official misconduct within high levels of the government of populist Minister Viktor Orbán.
Read more »