In a statement, the company’s CEO, David Tolley, said that about 90% of the company’s lenders have agreed to convert their $3 billion of debt into equity.He added that now was the time for the company to aggressively address its legacy leases and improve its balance sheet.
WeWork India, the local unit of the company, has released a statement regarding the US bankruptcy protection sought by the global unit.
The CEO of WeWork India, Karan Virwani, responded to the Chapter 11 filing made by WeWork Global, clarifying that WeWork India is a separate entity from WeWork Global and the recent Chapter 11 filing will not affect their operations in India. They will continue to operate and serve their members and partners as usual.
WeWork clarified that its bankruptcy filing only applies to its locations in the United States and Canada.
Read the company’s full statement on bankruptcy
“Today, WeWork Global has made the decision to initiate an important strategic reorganisation process in the U.S., along with recognition proceedings in Canada. This is a step towards improving its business’ economics, and enabling them to continue delivering best-in-class services well into the future.
WeWork India operates independently of WeWork Global, and our operations will not be affected in any manner. It is a separate entity in itself, and we are not a part of this strategic reorganisation process. The Chapter 11 filing does not impact the operations of the global entity as it continues to remain in possession of its business, operating as usual. The process restructures the debts and the leases of WeWork Global in the US and Canada. During this period, we will continue to hold the rights to use the brand name as part of the operating agreement, while serving our members, landlords, and partners as usual.
WeWork India is backed by majority stake holder Embassy Group, and is committed to investing in the future of our business. We remain fully focused on delivering exceptional and innovative flexible workspace solutions for our members in the region. We are the leaders in the flexible workspace industry and have transformed the way India works. WeWork India has been profitable since 2021, and we are committed to the robust growth and success of the business and the industry.”