WeWork reaches settlement with creditors, rebuffs Neumann bid
NEW YORK - Shared office space provider WeWork announced on Monday a settlement with its junior creditors and a new cash infusion from its senior lenders, moving ahead with a bankruptcy deal that rejects a $650 million offer from co-founder and former owner Adam Neumann.
After the restructuring, Cupar Grimmond would own a majority of WeWork's equity, and SoftBank would have 16.5%, although SoftBank's share could rise to as high as 36%, depending on how WeWork decides to equitize some separate credit facilities it has funded. Neumann and his new company, Flow Global, have argued that WeWork is selling its equity to "hand-picked" insiders instead of trying to get the highest bid.
"There might be a number at which the secured lenders would cash out, but we know now it's not $650 million," Sherwood said.
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