Login

WeWork’s Creditors Extend Far Beyond Its Landlords

JPMorgan, Goldman Sachs, Morgan Stanley Named in Bankruptcy Court Filing

WeWork's list of creditors goes beyond its landlords. (Getty Images)
WeWork's list of creditors goes beyond its landlords. (Getty Images)

Creditors in WeWork's Chapter 11 bankruptcy case extend far beyond office landlords or its majority shareholder, SoftBank.

The New York-based global flexible workplace provider's creditors include major financial services firms such as JPMorgan Chase, Goldman Sachs, Barclays Capital, Morgan Stanley and BlackRock, according to a “Certificate of Service” filing made on behalf of WeWork to the U.S. Bankruptcy Court for the District of New Jersey on Tuesday.

With WeWork's global reach, the list of 206 names includes entities in countries besides the United States, including Canada, Spain, France, Singapore and even Burkina Faso, according to the filing.

The names comprise a noncomprehensive list of shareholders who are also seen as creditors, even though they are low in the bankruptcy pecking order, a WeWork spokesperson said.

Like other equity investors, SoftBank will likely see its current majority equity stake, which the bankruptcy filing shows at about 72%, wiped out as part of WeWork's bankruptcy process.

That's because secured and other creditors have to be paid their allowed claims in full before any money can go to equity holders.

article
1 Min Read
December 12, 2023 09:56 AM
Follow CoStar’s coverage of the coworking giant’s efforts to find its financial footing.
CoStar News Staff

Social

Still, SoftBank, also the biggest holder of WeWork's debt, has agreed to do a debt-for-equity swap as part of WeWork's bankruptcy restructuring process to remain as the largest owner in the new WeWork should its plan receive approval from the court.

SoftBank is said to have lost more than $14 billion on about $16 billion it has invested.