Benzinga - by Benzinga Neuro, Benzinga Staff Writer.
Co-founder and former CEO of WeWork Inc. (OTC:WEWKQ), Adam Neumann, along with his capital providers, including Dan Loeb‘s Third Point, are considering making an offer to purchase WeWork out of bankruptcy.
What Happened: Neumann and Third Point have been attempting to acquire crucial information from WeWork since December to formulate a bid, as per a letter seen by Bloomberg News. They have also been working on a bankruptcy financing package for the coworking company. The potential bid could be for the entire company or its assets, but the specifics of Neumann’s offer were not disclosed.
The current bankruptcy plan for WeWork suggests transferring ownership to the company’s most senior debt holders, which includes the holders of its credit line, first-lien notes, and second-lien notes. This could potentially lead to the wiping out of third-lien noteholders and unsecured creditors.
Why It Matters: The potential bid by Neumann and Third Point comes after a tumultuous period for WeWork. In September 2019, Neumann stepped down as CEO amid pressure from board members and investors. The company then underwent a series of changes, including appointing a new CEO, David Tolley, in 2023.
Despite these efforts, WeWork was expected to file for bankruptcy in November, with its stock down more than 99% from its listing price.
Read Next: Biden The Master Oil Trader Part III? President Refills Emergency Stash As Crude Price Slides
Image via Shutterstock
Engineered by
Benzinga Neuro, Edited by
Pooja Rajkumari
The GPT-4-based Benzinga Neuro content generation system exploits the
extensive Benzinga Ecosystem, including native data, APIs, and more to
create comprehensive and timely stories for you.
Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.