By Dietrich Knauth
NEW YORK (Reuters) -A U.S. bankruptcy judge on Thursday approved WeWork’s Chapter 11 bankruptcy plan, allowing the shared office space provider to eliminate $4 billion in debt and hand the company’s equity over to a group of lenders and real estate technology company Yardi Systems.
WeWork used its bankruptcy to negotiate a significant reduction in future rent costs from its landlords, ultimately reaching deals to save $8 billion in future rent costs. WeWork canceled leases at about 160 of its 450 locations during bankruptcy.
WeWork rejected an alternate buyout proposal offered by its co-founder and ex-CEO Adam Neumann. The company said Neumann didn’t offer a high enough price to win over WeWork’s lenders, who preferred to take an equity stake as part of the bankruptcy deal.
(Reporting by Dietrich Knauth)
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