WeWork Rejects Adam Neumann's Acquisition Bid, Unveils Restructuring (businessinsider.com) 7
An anonymous reader quotes a report from Business Insider: WeWork has a new plan to get out of bankruptcy -- and it doesn't involve Adam Neumann, who wants to acquire the flexible office provider he created. WeWork announced Monday that it has raised $450 million in equity funding, which it could use to emerge from Chapter 11. The company also said it has a plan in place to "eliminate all of its $4 billion of outstanding, prepetition debt obligations." A vote on the plan -- which has support from the owners of most of WeWork's debt -- is scheduled for May 30, according to Bloomberg.
The majority of the funding -- $337 million, to be exact -- would come from Cupar Grimmond, and SoftBank would still own a stake in the company, according to the outlet. But Neumann, who has recently expressed interest in purchasing WeWork for more than $500 million, doesn't plan to go down without a fight. "After misleading the court for weeks, WeWork finally admitted it is trying to sell the company to a group led by Yardi for far less than we are continuing to propose," Susheel Kirpalani, an attorney for Neumann's new real estate startup Flow Global, told Business Insider in a statement, adding, "so we anticipate there will be robust objections to confirming this plan."
The majority of the funding -- $337 million, to be exact -- would come from Cupar Grimmond, and SoftBank would still own a stake in the company, according to the outlet. But Neumann, who has recently expressed interest in purchasing WeWork for more than $500 million, doesn't plan to go down without a fight. "After misleading the court for weeks, WeWork finally admitted it is trying to sell the company to a group led by Yardi for far less than we are continuing to propose," Susheel Kirpalani, an attorney for Neumann's new real estate startup Flow Global, told Business Insider in a statement, adding, "so we anticipate there will be robust objections to confirming this plan."
I don't get it. (Score:2)
Adam crashing WeWork a second time (Score:3)
and again walking away with millions once more to go on another spiritual vegan adventure with his beloved Rebekaaaaaah.
Re: (Score:2)
and again walking away with millions once more to go on another spiritual vegan adventure with his beloved Rebekaaaaaah.
Yeah ... trying to get a second bite out of that apple and then being told to go pound sauce.
Re:I don't get it. (Score:4, Informative)
If he told me it was raining, I'd look out the window.
Re: (Score:1)
(1) How do you make $4 Billion in debt just disappear?
(2) Why would you trust the guy who got you $4 Billion in debt in the first place?
Re: (Score:2)
(1) How do you make $4 Billion in debt just disappear? (2) Why would you trust the guy who got you $4 Billion in debt in the first place?
There's some truly weirdo math that goes on when you're dealing with numbers that big. Like, there's some line around the billion dollar mark that, if you fuck up bad enough to nosedive into the billions in debt, well, you must really be something special to be dealing with those kind of numbers. So the investor/venture capitalists/business regime folks get all giddy and start stroking out about genius level and forget that there's a big negative ("-") in front of the number. I've seen it happen with a form
Re: (Score:2)
Any plan to get creditors to help discharge 4 billion in debt is not likely to sell well with them if it includes the guy who ran up that 4 billion in debt in the first place.
More than half of that debt (possibly more than 3/4), BTW, is the money that Neumann extracted from WeWork and still has in his bank accounts. Now if he offered to pay that back to the debtors, then maybe bringing him back in would make some headway.