WeWork has announced the confirmation of its Plan of Reorganization by the United States Bankruptcy Court for the District of New Jersey, marking the final step in the company’s operational and financial restructuring. With this confirmation, WeWork expects to emerge from Chapter 11 in mid-June, following the completion of administrative matters. 

Over the past nine months, WeWork has undertaken a series of restructuring efforts to address its high-cost lease portfolio and reduce its corporate debt. This included renegotiating hundreds of office leases and collaborating closely with creditors and stakeholders. The approved Plan of Reorganization eliminates over $4 billion of prepetition debt, reduces future rent expenses by approximately $12 billion, and secures $400 million of new equity capital. WeWork will emerge debt-free and operate as a private company owned by its prepetition secured lenders. 

“In one of the largest and most complex restructurings, we have achieved extraordinary outcomes. Over the last year, we have also seen strong demand across the WeWork system and increased our member net promoter scores,” said David Tolley, Chief Executive Officer of WeWork.