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WeWork Strikes $450M Restructuring Deal, Excludes Co-Founder Neumann

Apr 29, 2024, 03:46 PM

WeWork, once valued at $47 billion, has struck a restructuring deal to exit bankruptcy, excluding co-founder Adam Neumann from the plan. The deal involves a $450 million debtor-in-possession (DIP) financing, which will consume 80% of the post-reorganization equity, leaving approximately $200 million in equity. This agreement, supported by major financial backers including SoftBank, rejects a competing bid from Neumann, who has actively sought to buy the company out of bankruptcy. As part of its restructuring, WeWork also plans to close its corporate headquarters at Kato International's Tower 49.