SoftBank Group backed startup WeWork whose meteroic 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.
The Japanese technology group SoftBank owns about 60% of WeWork and has invested billions of dollars in its turnaround, that the company cannot survives, until it renegotiates its pricey leases in bankruptcy.
A spokesperson for WeWork stated that around 92% of the company’s lenders have agreed to turn their debts into equity under restructuring support agreement, which will wipe out around $3 billion of the company’s debt.
The company, which has already filed for recognition proceedings in Canada, said that it is expecting to have the financial liquidity to continue its operations normally. It added that its locations outside USA and Canada, as well as franchisees around the world, were not affected by these proceedings.