## WeWork Expects to Emerge from Bankruptcy by May
Embattled co-working space provider WeWork is expected to emerge from bankruptcy by the end of May. The company has been restructuring its leases, which is estimated to bring $8 billion in future rental savings.
Cutting back on real estate costs has been a top priority for WeWork since it filed for Chapter 11 bankruptcy in November 2023. At the time, rental liabilities accounted for about two-thirds of its operating costs. WeWork has been trying to renegotiate nearly all of its leases.
In an update, WeWork said it has "determined a final path forward" at 90% of its 500 wholly owned locations. This includes agreements to amend or reject leases.
WeWork has also reached an agreement with holders of 92% of its secured notes to eliminate more than $3 billion in debt obligations.
During bankruptcy proceedings, WeWork made headlines for withholding rent payments to landlords while it attempted to renegotiate leases. Lawyers for some landlords pushed back in court, saying the moves violated bankruptcy rules.
WeWork first announced plans to renegotiate its leases in September 2023, just weeks after the company expressed concerns about its ability to remain in business. Beyond the need to cut back on its real estate portfolio, WeWork pointed to increased member churn and financial losses.
The specter of bankruptcy had hovered over WeWork for some time. Experts previously pointed to the price of the company's aggressive expansion in its early years. WeWork went public in October 2021 after its first attempt to do so two years earlier collapsed. The debacle led to the ouster of founder and CEO Adam Neumann.
Japan's SoftBank stepped in to keep WeWork afloat, acquiring majority control over the company.