WeWork Files For Bankruptcy: What Happens To Its Offices In India?

Once valued at $47 billion, the beginning of the end has begun for office space-sharing giant WeWork Global as it has filed for Chapter 11 bankruptcy protection.

When Did WeWork File Bankruptcy?

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WeWork filed for Chapter 11 bankruptcy protection on Monday (6th November 2023), and has listed both assets and liabilities in the range of $10 billion to $50 billion in a Chapter 11 petition filed in New Jersey. The bankruptcy filing allows WeWork to keep operating while it works out a plan to repay its debts.

Which WeWork Locations Will The Bankruptcy Affect?

The bankruptcy filing is limited to WeWork’s locations in the U.S. and Canada, the company said in a press release. So, WeWork's locations outside of the U.S. and Canada, as well as its franchisees around the world, are not affected by these proceedings.

What About WeWork’s India Business?

WeWork India has clarified that it is a separate entity from WeWork Global. “The recent Chapter 11 filing will not impact our members and stakeholders in India. We will continue to operate and serve our members, landlords, and partners as usual. Committed to the growth and success of our business”, it tweeted today.

Also Read;?What Went Wrong At?WeWork?As It Gets Set To File For Bankruptcy

How Did WeWork CEO React To The Bankruptcy Filing?

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“I am deeply grateful for the support of our financial stakeholders as we work together to strengthen our capital structure and expedite this process through the Restructuring Support Agreement,” WeWork CEO David Tolley said in a press release, CNBC reported. “We remain committed to investing in our products, services, and world-class team of employees to support our community.

WeWork’s Former CEO and co-founder Adam Neumann said that the bankruptcy filing was “disappointing.”

“It has been challenging for me to watch from the sidelines since 2019 as WeWork has failed to take advantage of a product that is more relevant today than ever before,” Neumann said in a statement to CNBC. “I believe that, with the right strategy and team, a reorganization will enable WeWork to emerge successfully.”

When Was WeWork The Most Valuable Startup In US?

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The past few years have seen WeWork suffer one of the most spectacular corporate collapses in recent U.S. history. From being the US's most valued startup, at $47 billion in 2019, the company is now seeking bankruptcy protection.?

The pandemic caused further pain as many companies abruptly ended their leases, and the economic slump that followed led even more clients to close their doors.

How Much Have WeWork’s Shares Crashed?

WeWork’s shares have crashed 98% this year to date, falling to as low as $0.84. As far as the bankruptcy filing is concerned, WeWork has engaged Kirkland & Ellis and Cole Schotz as legal advisors. PJT Partners will serve as its investment bank, with support from C Street Advisory Group and Alvarez & Marsal.

Also Read:?10 Big Companies That Bounced Back From The Brink Of?Bankruptcy

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