WeWork has a new plan to emerge from bankruptcy — and it doesn’t involve Adam Neumann, who wants to acquire the flexible office provider he created.
WeWork announced Monday that it had raised $450 million in equity capital, which it could use to emerge from Chapter 11. The company also said it had a plan in place to “eliminate its entire $4 billion of unpaid debts before the rehearsal.
A vote on the plan — which has the support of the owners of most of WeWork’s debt — is scheduled for May 30, according to Bloomberg.
The majority of the funding – $337 million, to be exact – would come from Cupar Grimmond, and SoftBank would still have a stake in the company, according to the outlet.
But Neumann, who recently expressed interest in purchasing WeWork for more than $500 million, doesn’t plan to go down without a fight.
“After weeks of misleading the court, WeWork finally admitted that it was trying to sell the company to a group led by Yardi for a much lower price than we continue to offer,” said Susheel Kirpalani, attorney for Neumann’s new real estate startup, Flow Global. Business Insider added in a statement: “We therefore anticipate that there will be strong objections to confirming this plan.”
WeWork split from Neumann five years ago following its failed IPO. The company filed for bankruptcy in November 2023 after the pandemic dealt a major blow to its business model.
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