WeWork India, which is owned by the Bengaluru-based real estate giant Embassy Group, has maintained that global developments will have no influence on Indian business. WeWork India has over 50 locations around the country.
WeWork, a global coworking company, has declared bankruptcy in the United States and has begun a comprehensive reorganization and restructuring process to reduce debt and rebuild its financial sheet.
NYSE-listed WeWork Inc stated that its locations outside of the United States and Canada will be exempt from the proceedings.
WeWork Inc, financed by Softbank and once valued at USD 47 billion, posted a net loss of USD 696 million in the first half of this year.
WeWork India, which is owned by the Bengaluru-based real estate giant Embassy Group, has maintained that global developments will have no influence on Indian business. WeWork India has over 50 locations around the country.
Embassy Group owns 73% of WeWork India, while WeWork Global owns the other 27%.
WeWork Global will invest USD 100 million in WeWork India in June 2021.
WeWork Inc announced in a statement that the firm and several of its subsidiaries had “filed for protection under Chapter 11 of the U.S. Bankruptcy Code, and intend to file recognition proceedings in Canada under Part IV of the Companies’ Creditors Arrangement Act (the CCAA Recognition Proceedings).” WeWork facilities outside of the United States and Canada are not included in this procedure, according to the company.
“WeWork’s franchisees around the world are similarly not affected by these proceedings,” the company stated in a statement.
WeWork Inc announced a significant reorganization to enhance its capital structure and financial performance in order to better position the firm for future success.
“The company maintains the strong support of its key financial stakeholders and has entered into a Restructuring Support Agreement (RSA) with holders representing approximately 92 per cent of its secured notes to drastically reduce the company’s existing funded debt and expedite the restructuring process,” according to the press release.
WeWork will further streamline its commercial office leasing portfolio at this time.
As worldwide operations are likely to continue as usual, it will focus on business continuity and providing best-in-class services to its members.
WeWork Inc and several of its subsidiaries have declared bankruptcy in order to fulfill their objectives.
David Tolley, president and CEO of WeWork, stated, “Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet.” WeWork’s consolidated real estate portfolio comprised of 610 facilities in 33 countries as of June 30, 2023, supporting over 715,000 workstations and 512,000 physical memberships.
