Bankruptcy Advisory Firm Hired To Assist WeWork
SoftBank, majority shareholder in WeWork, hired Houlihan Lokey, an American investment bank that specializes in bankruptcy attempting to revive the office rental company, according to Markets Insider.
"Houlihan is working on cutting liabilities as WeWork mulls a sperate deal that could hand control of the struggling office-sharing company to SoftBank, its biggest shareholding, according to the people," Bloomberg wrote on the topic. WeWork has been reported on the brink of bankruptcy and could run out of cash by November.
WeWork is weighing financing options from JP Morgan and SoftBank. Furthermore, the company is analyzing its portfolio and reviewing which assets were causing losses and reportedly cutting 2000 jobs as soon as next week. The recent havoc has also had a negative effect on WeWork's bonds, as investors fear the company won't be able to pay back its debt.
WeWork is exploring an option with JP Morgan that would refinance the company with $5 billion in its package. The other option is with SoftBank and would essentially lead to the Japanese firm taking control of WeWork, as it would invest $10 billion in the firm.
WeWork is reportedly favoring the JP Morgan option, despite SoftBank already investing billions in the firm. WeWork's fall from grace has led to the incorporation of a bankruptcy advisory firm into the business plan.