WeWork tapping advisers for restructuring help – Bloomberg News
2023.08.23 13:31
© Reuters. FILE PHOTO: The WeWork logo is displayed on a screen during the company’s IPO on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 21, 2021. REUTERS/Brendan McDermid/File Photo
(Reuters) – WeWork is tapping advisers for restructuring advice as it struggles with a heavy debt load and poor financial performance, Bloomberg News reported on Wednesday citing people familiar with the matter.
Shares of the Softbank (OTC:) Group-backed WeWork fell about 15% to 0.12 cents in afternoon trade.
The New York Stock Exchange (NYSE) suspended trading in WeWork’s warrants on Tuesday due to “abnormally low” trading price levels and said will initiate proceedings to delist them.
The flexible workspace provider has hired real estate adviser Hilco Global, engaged consultant Alvarez & Marsal and re-engaged law firm Kirkland & Ellis for advice on its options, according to the report.
The company is seeking to avoid a Chapter 11 bankruptcy filing and restructure its debts out of court, the report added citing a person familiar with the matter.
WeWork, Hilco Global, Alvarez & Marsal and Kirkland & Ellis did not immediately respond to Reuters’ requests for comment.
