The New York Times reported on Tuesday that WeWork Inc is in talks with investors to restructure its more than $3 billion in outstanding debt and raise more cash.
Following the news, the company's stock rose about 5% in extended trading.
The company, which provides workstations, private offices, and customized floors, has benefited from a pandemic-driven shift to flexible work outside of traditional offices, but is now bracing for the potential consequences of an impending economic downturn.
WeWork forecasted weak current-quarter revenue in February, indicating that its business was feeling the effects of mass layoffs as companies reduced their real estate footprint.
According to people familiar with the negotiations, a cash infusion would most likely provide WeWork with the hundreds of millions of dollars it needed to continue operations for at least a few years.
According to the newspaper, Yardi, a real estate software provider based in Santa Barbara, California, is among the investors considering new investments in the company.
WeWork made no comments on the situation.
According to the report, which cited one of the people, there is no guarantee that the WeWork deal will close, and even if it does, it could take weeks.
According to the report, Japan's SoftBank Group Corp, which is both WeWork's largest shareholder and its largest debtor, is playing an important role in the negotiations but is not expected to put any additional money into the company.
After announcing last year that it would exit about 40 underperforming U.S. locations due to high expenses and a strong U.S. dollar, the New York-based company announced in January that it would eliminate about 300 roles across countries.
(Source:www.investing.com)
Following the news, the company's stock rose about 5% in extended trading.
The company, which provides workstations, private offices, and customized floors, has benefited from a pandemic-driven shift to flexible work outside of traditional offices, but is now bracing for the potential consequences of an impending economic downturn.
WeWork forecasted weak current-quarter revenue in February, indicating that its business was feeling the effects of mass layoffs as companies reduced their real estate footprint.
According to people familiar with the negotiations, a cash infusion would most likely provide WeWork with the hundreds of millions of dollars it needed to continue operations for at least a few years.
According to the newspaper, Yardi, a real estate software provider based in Santa Barbara, California, is among the investors considering new investments in the company.
WeWork made no comments on the situation.
According to the report, which cited one of the people, there is no guarantee that the WeWork deal will close, and even if it does, it could take weeks.
According to the report, Japan's SoftBank Group Corp, which is both WeWork's largest shareholder and its largest debtor, is playing an important role in the negotiations but is not expected to put any additional money into the company.
After announcing last year that it would exit about 40 underperforming U.S. locations due to high expenses and a strong U.S. dollar, the New York-based company announced in January that it would eliminate about 300 roles across countries.
(Source:www.investing.com)
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