Annalee Leggett’s Post

WeWork recently announced that it has completed its global restructuring. We have successfully strengthened our real estate portfolio around the world and have received Court approval to emerge from the Chapter 11 process in the U.S. and Canada. WeWork is positioned to deliver sustainable growth, excellence in service delivery and innovation, and an enhanced member experience. Read more about the update here: we.co/3yHwVUd Through the approved Plan, WeWork will: - Eliminate more than $4 billion of prepetition debt, emerging debt-free;  - Reduce total future rent expenses by approximately $12 billion or over 50%; - End the substantial operating losses that characterized the Company’s years of hypergrowth and subsequent contraction; - Secure $400 million of new equity capital to support operating investments and future strategic growth; and - Operate as a private company, owned by its prepetition secured lenders. WE thank all members and partners for keeping faith and believing in us throughout this journey. #KeepBelieving #WeWork #Singapore Benjamin Samuels Luke Armstrong Balder Tol Yossi Dayan Adam Dangerfield Dylan Burke Derek Hung Pay Chia Chee (Jia Qi) Desmond Leong Cara Soong Jonathan Hong Joel Khoo Elysia T. Cindy Song 傅浚源Adler Poh Kimberley Chong Chloe Read Max Heng Julene Low Kelvin Ho Chris Revord Harris Ang Medha Surabhi Bernice Wang Marcus Chua Robin Wau Marta Moral Mas Clarence Choo Tosin Moningka Nisa Tangsilwattanakul Shanon Quek Ivan D. Divie Aurelia Shivani Pereira

WeWork May Emerge From Bankruptcy in North America by May 31st Today WeWork announced these milestones in their restructuring efforts. 📝 Lease Amendments: Revised approximately 150 leases. 📍 Strategic Lease Retention: Kept leases for 150 crucial locations. 🚪 Lease Rejections/Negotiated Exits: Progress in about 150 cases. 💰 Rent Commitment Reduction: Over $8 billion in future rent commitments cut. A huge step towards financial agility. 🏦 Debt Reduction: Agreement reached to eliminate over $3 billion in prepetition secured debt. Does this set the stage for Adam swoop in 🤔 https://lnkd.in/gqFHRgk2?

After a busy 6 months, this one feels good! You all know the story of WeWork and last week, we started the most pivotal & important part to that story, as we have received Court approval to emerge from the Chapter 11 process. This means: 🏢 $12 Bn reduction in total rent Comittments (I.e. A savings of over 50%) 💳 $4bn of Debt eliminated 💰$400 million in new equity capital to support operating investments and future strategic growth. All this, whilst maintaining an extremely robust & high-quality global footprint (45m SQFT, 600 locations, 120 cites & 37 countries). A big thank you to members, partners and colleagues for standing by us. --- WeWork announced that it has completed its global restructuring. We have successfully strengthened our real estate portfolio around the world and have received Court approval to emerge from the Chapter 11 process in the U.S. and Canada. WeWork is positioned to deliver sustainable growth, excellence in service delivery and innovation, and an enhanced member experience. Read more about the update here: we.co/3yHwVUd

What a ride, the start of a new era. And yes, We are here to stay! Today, we add the most pivotal & important part to that story, as we have received Court approval to emerge from the Chapter 11 process. This means: - $12 Bn reduction in total rent Comittments (I.e. A savings of over 50%) - $4bn of Debt eliminated - $400 million in new equity capital to support operating investments and future strategic growth. All this, whilst maintaining an extremely robust & high-quality global footprint (45m SQFT, 600 locations, 120 cites & 37 countries). A big thank you to members, partners and colleagues for standing by us. --- WeWork today announced that it has completed its global restructuring. We have successfully strengthened our real estate portfolio around the world and have received Court approval to emerge from the Chapter 11 process in the U.S. and Canada. WeWork is positioned to deliver sustainable growth, excellence in service delivery and innovation, and an enhanced member experience. Read more about the update here: we.co/3yHwVUd Rebecca N. Benjamin Samuels Yossi Dayan Leila Zreik Kuteish Pauline Perdriel Greg Cohen Léa Martinez Adam Dangerfield Adam Halaïmia Luke Armstrong Julia Hartley Teresa Currie Romeo Charles de Pelleport

Here we go!! A new chapter in the journey of WeWork is ready to proceed. With DIP financing in place, leases having been restructured, terminated, or renewed, plus wiping out old debt, a thinner and less bloated company will emerge and exit bankruptcy. And the new version of WeWork will be private so they won't have to face the public challenges of the past. Some food for thought: Financial statements while in bankruptcy continued to expose the hard reality and flaws within the WeWork business model. Will it be business as usual or have they actually reorganized and restructured their revenue model, G&A expenses, and how they operate? Emerging out of bankruptcy is one thing, but sustaining operations in a positive light and actually generate profitability is the uphill challenge. What role will Yardi play in WeWork's future now that they are majority owner? How fast will WeWork burn through their cash reserves and financing? Lots to ponder and discuss. Meanwhile the flex office industry continues to grow as companies have leaned into their distributed teams and support flexible workplace solutions for their employees. The silver lining in the office industry is all about the transformation of the office and elevating the workplace experience. And with 6,500 flex locations throughout the US, alignment within the workplace is becoming clearer. Isn't it time that you elevated your workplace experience?

Debt. Free. Today marks a historic day for WeWork 🚀 Today we secured final Court Approval to emerge from Chapter 11 and move forward with a plan for real, sustainable growth 📈 Quick Highlights: ▪ 600+ locations remain open ▪ 45M Square Feet ▪ $12B in projected rent savings ▪ $4B of debt eliminated As a result, we remain the leading flexible workspace brand on the globe 🌎 Not enough space to thank everyone involved or describe the twists and turns this took to get here, but I'm thankful to have experienced it for better or worse. We take a quick breath and shift into growing top line revenue once again 💪 #emergence #cre #growthmode https://lnkd.in/geHCsBea

Too big to fail. Big message to #landlords to be learned here… and perhaps #lenders and #financiers too! WeWork ‘s operating model was far too exposed to fixed costs. Think about hundreds of leases, and contracted payments. This is great when the economy is roaring, however as soon as sales declined they were left with a big hole to fill, and couldn’t react quick enough. When was the last time your business had a review? Contact us today to book an appointment. #smebusiness #businessreview #businessperformance #maximizeprofits

WeWork Secures New Ownership Structure WeWork, the flexible workplace provider, has emerged from Chapter 11 bankruptcy protection with a new ownership structure that includes major investment firms such as BlackRock, Brigade Capital Management, Capital Research and Management Company, King Street Capital Management, and Sculptor Capital. The debt-for-equity swap plan, which reduces WeWork's existing funded debt by about $3 billion, signals renewed confidence in the company's future. The involvement of these prominent investment firms provides WeWork with access to significant capital and expertise, which could be instrumental in its turnaround efforts. WeWork's bankruptcy restructuring plan also includes lease renegotiations with over 400 landlords worldwide, aiming to reduce its lease burden, which has been a major obstacle to profitability. Additionally, the company is rejecting about 69 leases, including 40 in New York. Despite the challenges ahead, WeWork's new ownership structure and strategic initiatives position the company for a potential comeback. The company's focus on flexibility and adaptability aligns with the evolving workplace landscape, and its global presence offers a competitive advantage. While the success of WeWork's turnaround strategy remains to be seen, the company's new ownership structure and commitment to addressing its financial and operational challenges provide a promising foundation for its future.

Symbolic of the shifting sands in commercial real estate, WeWork’s Chapter 11 filing marks a key milestone for a business that has faced many high-profile challenges. It also hails the beginning of a significant restructuring process, with 92 percent of the company’s creditors signing off on a comprehensive plan to reduce its debt. Having followed the company’s highs and lows through data, Debtwire’s John Bringardner shared his insights with The Washington Post’s Andrew Jeong, predicting we’ll see the business emerge from an “orderly” restructuring process “…with a far smaller footprint.” Read the full piece with John’s insights here: https://lnkd.in/gv9HXieY #WeWork #realestate #bankruptcy

Wishing WeWork a quick and strong rebound from chapter 11 Firms exists because of high transaction cost of using the market. Wherever in value chain, if market provides better economic value (current and future), that part will move out of firm. Example - large scale Engineering companies outsource steel detailing, or western fast fashion brands get garments manufactured in Asia. Digital technologies reduce the transaction cost - be it exchange of data, goods or services. Just imagine how complicated and costly it would be to connect riders and drivers - if there were no computer and internet. As digital technologies surge, transaction costs will keep coming down. At firm level, value chain will break, and at individual level renting will get more economical than owning. In nutshell – the “Servitization” is the here to stay. WeWork Servitized office space – helped small business, freelancers with access to world class office facilities. There was covid, lockdown, some expansion plans during unfortunate circumstance, then came quantitative tightening and cost of capital increased, VC chests dried up. Consequently WeWork is at chapter 11. WeWork’s business model is very relevant, wishing them a strong rebound, kudos to soft bank for taking bets on new ideas and young entrepreneurs.