12:07 PM UTC – November 7, 2023
(Reuters) – WeWork, the SoftBank Group-backed startup whose meteoric rise and fall reshaped the office sector globally, sought U.S. bankruptcy protection on Monday after its bets on companies using more of its office-sharing space soured.
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The move represents an admission by SoftBank (9984.T), the Japanese technology group that owns about 60% of WeWork (WE.N) and has invested billions of dollars in its turnaround, that the company cannot survive unless it renegotiates its pricey leases in bankruptcy.
A WeWork spokesperson said about 92% of the company’s lenders had agreed to convert their secured debt into equity under a restructuring support agreement, wiping out about $3 billion of debt.
The company, which also intends to file recognition proceedings in Canada, said it expected to have the financial liquidity…
