WeWork is on track to complete restructuring and exit Chapter 11 bankruptcy protection by May 31, the company said today.
The company is close to completing a strategy that focuses on a combination of amended leases, lease rejections and new management agreements. Since launching its initiative last fall, WeWork has reached solutions for about 90 percent of its global locations, according to the company.
The flexible space provider has been evaluating operations and rental costs at its 500 locations. To date, WeWork has completed some 150 lease amendment agreements and about 150 lease rejections or building exits. In 150 or so other locations, existing lease terms will support the company’s future business plan.
In another major step, WeWork has achieved a reduction of more than $8 billion in future rent commitments. The company also reached an agreement to eliminate more than $3 billion in prepetition secured debt obligations.
As WeWork restructures, several suitors have pursued proposals to acquire the business. Rentberry, a San Francisco-based home rental platform, announced in February its intentions of purchasing WeWork, a move that Rentberry said would complement its proprietary Flexible Living model. Late last month, former WeWork CEO Adam Neumann proposed to buy the company for upward of $500 million. But no deal so far.
