WeWork is planning to file for bankruptcy as early as next week, sources have told the Wall Street Journal. Earlier Bloomberg also reported the company would file for bankruptcy in November.
WeWork declined to comment to the WSJ on what a spokesperson called "speculation."
The only public announcement from the company came in the form of a securities filing in which it said it would withhold interest payment of about $6.4 million on some of its notes even though it has the cash to make the payment. It now has a 30-day grace period. The company also said it entered into an agreement with creditors for temporary postponement of payments for some of its other notes. "The forbearance agreement provides time to continue in the positive conversations with our key financial stakeholders and engage with them to implement our ongoing strategic efforts to enhance our capital structure," the WeWork spokesperson told the WSJ.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
