Newmark Group said Monday it had agreed to provide debtor-in-possession (DIP) financing to Knotel, Inc. and acquire Knotel’s business through its Chapter 11 sales process. The Midtown South-based flexible office provider filed for voluntary bankruptcy protection Monday.
“We look forward to supporting Knotel through this difficult period,” said Newmark CEO Barry Gosin. “We are providing capital to Knotel so it can right-size its business for the path forward.”
Knotel co-founder and CEO Amol Sarva said, “The pandemic created a uniquely challenging operating environment, with significant impacts on leasing velocity and the rate of renewals in key markets, particularly New York and San Francisco.”
To facilitate this transaction, an affiliate of Newmark has agreed to provide Knotel with approximately $20 million in cash as DIP financing to support the flexible office provider through the bankruptcy process. Additionally, Newmark owns all of the outstanding first- and second-lien secured debt of Knotel.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism.
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