WeWork Amends Leases to Emerge from Bankruptcy 

WeWork Inc. expects to exit Chapter 11 bankruptcy by late spring, with plans to finalize arrangements for 90% of its global real estate portfolio. 

“We are well on our way to building a strong and sustainable WeWork,” said David Tolley, Chief Executive Officer. “The size, scope, and complexity of our real estate restructuring is unprecedented in our industry, and we’ve made remarkable progress to date optimizing our building footprint. We remain committed to emerging from our global real estate and financial restructuring later this quarter, and expect to do so with little to no debt and as a continuing leader in our industry, operating over 20 million square feet of real estate in over 20 countries around the world.”

The company aims to complete the Chapter 11 process in the U.S. and Canada by May 31, following its filing in November. WeWork has restructured approximately 150 leases, negotiating reductions totaling over $8 billion in future rent commitments, and secured an agreement with holders of 92% of its secured notes to eliminate $3 billion in debt. The restructuring involved reducing leased space, renegotiating rents, and entering revenue-sharing agreements with landlords.  

WeWork has intended to reduce its debt and evaluate its commercial office lease portfolio through a restructuring support agreement with the majority of its stakeholders in 2023. The company also sought the ability to reject leases for certain mostly non-operational locations, leading to the termination of almost 70 leases, including 35 in New York City, with 34 in Manhattan and one in Brooklyn.