SoftBank-backed WeWork Files For Bankruptcy

RTTNews | 612 days ago
SoftBank-backed WeWork Files For Bankruptcy

(RTTNews) - Flexible space provider WeWork, which is backed by Japanese technology major SoftBank Group, filed for Chapter 11 bankruptcy protection. The company, which was once valued at $47 billion, has entered into restructuring support agreement with its key financial stakeholders, with a view to drastically reducing its existing funded debt.

As part of the process, the office sharing company plans to reject largely non-operational leases of certain locations to position itself for operational and financial success.

The bankruptcy filing is limited to WeWork's locations in the U.S. and Canada. Other locations as well as its franchisees around the world are not part of the process.

As per the bankruptcy filing, the company listed assets of $15.06 billion and liabilities of $18.66 billion as of June 30.

WeWork in September had initiated a process to renegotiate nearly all its leases as the loss-making firm tried to fix its financial troubles. As part of the move, the company planned to exit unfit and underperforming locations and to reinvest in its strongest assets.

WeWork then had stated that it was on a year-long transformation following unsustainable hypergrowth to reduce cost, grow revenue and strengthen balance sheet.

In a statement, WeWork now said it has filed for protection under Chapter 11 and intends to file recognition proceedings in Canada under Part IV of the Companies' Creditors Arrangement Act.

During the restructuring process, the company's spaces would remain operational.

The Restructuring Support Agreement or RSA has been entered with holders representing around 92% of its secured notes. SoftBank owns about 60 percent of WeWork.

David Tolley, CEO of WeWork said, "Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet. We defined a new category of working, and these steps will enable us to remain the global leader in flexible work."

In the process, Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal counsel, and Alvarez & Marsal North America, LLC is serving as financial and restructuring advisor.

read more
OpenAI Raises $40 Bln In SoftBank-led Funding Round At $300 Bln Post Valuation

OpenAI Raises $40 Bln In SoftBank-led Funding Round At $300 Bln Post Valuation

OpenAI announced that it has raised around $40 billion in the latest funding round led by Japan's SoftBank, valuing the ChatGPT maker at around $300 billion. OpenAI Chief Executive Sam Altman stated that the investment helps the firm push the frontier and make AI more useful in everyday life.
RTTNews | 101 days ago
SoftBank's $100 Bln Pledge In US To Create 100K AI, Infrastructure Jobs

SoftBank's $100 Bln Pledge In US To Create 100K AI, Infrastructure Jobs

Japan's SoftBank Group is planning to invest $100 billion in the United States over the next four years, which would create more than 100,000 jobs in Artificial Intelligence or AI and related critical infrastructure. During President-elect Donald Trump's first news conference since the election, SoftBank founder and Chief Executive officer Masayoshi Son joined to make the announcement...
RTTNews | 206 days ago
WeWork To Renegotiate Nearly All Its Leases

WeWork To Renegotiate Nearly All Its Leases

WeWork Inc. said it is starting a process to renegotiate nearly all its leases worldwide as the loss-making flexible space provider tries to fix its financial troubles. As part of the move, the company, which offers workspaces and services, plans to exit unfit and underperforming locations and to reinvest in its strongest assets.
RTTNews | 673 days ago
SoftBank Chip Unit Arm Files For US IPO

SoftBank Chip Unit Arm Files For US IPO

Chip designer Arm, owned by Japan's SoftBank, has filed for an initial public offering in the United States. The proposed IPO on the Nasdaq exchange is expected to be one of the largest listing in recent years. The UK-based company revealed the IPO information in a filing with the U.S. Securities And Exchange Commission, while a prospective share price is yet to be listed.
RTTNews | 689 days ago
Canadian Market Remains Weak On Tariff Concerns

Canadian Market Remains Weak On Tariff Concerns

After a weak start and a subsequent drop to lower levels, the Canadian market continues to languish in negative territory a little past noon on Friday. The mood is cautious amid escalating trade war fears following U.S. President Donald Trump announced a 35% tariff on all non-USMCA Canadian imports, effective August 1.
RTTNews | 7 minutes ago
Bay Street Likely To Open Lower

Bay Street Likely To Open Lower

Canadian shares look headed for a weak start on Friday due to trade war concerns, although fairly firm crude oil and bullion prices may help limit the market's downside. Data showing an increase in Canadian employment in the month of June and a drop in the unemployment rate may also aid sentiment a bit.
RTTNews | 3h 50min ago
Pound Falls As U.K. Economy Contracts For Second Straight Month

Pound Falls As U.K. Economy Contracts For Second Straight Month

The British pound weakened against other major currencies in the European session on Friday, as the UK economy shrank for the second consecutive month in May, adding challenges to Chancellor Rachel Reeves in achieving her self-imposed borrowing rules.
RTTNews | 3h 57min ago