A US bankruptcy judge has approved WeWork's Chapter 11 bankruptcy plan, allowing the shared office space provider to eliminate $4 billion in debt and hand the company's equity over to a group of lenders and real estate technology company Yardi Systems.
Flexible workspace provider WeWork expanded at breakneck speed but racked up steep losses on its over-extended real estate portfolio before filing for bankruptcy protection in November 2023. "Due to the tireless efforts of our team, and the unwavering loyalty of so many of our members, we have completed our Chapter 11 proceedings with success well beyond our initial expectations," WeWork CEO David Tolley said.
The company, once valued at $47 billion, estimates that its post-bankruptcy equity is worth about $750m.