According to authorities, WeWork filed for Chapter 11 bankruptcy protection in the federal court of New Jersey on Monday, reporting that it had entered into agreements with more than 80% of its secured noteholders and that it intends to trim leases which do not serve its objectives.
WeWork said in a press release that the bankruptcy filing is valid only for its locations in the U.S. and Canada and it has no effect on its international operations. A preliminary filing of WeWork found that the company owed $18.65 billion in debt, with assets valued at $15.06 billion.
According to the filing, WeWork, an office space provider that serves co-working spaces across the United States and Canada, has filed for bankruptcy to cover the liabilities it has incurred from more than $10 billion to over $50 billion. Earlier this year, the company was valued at $47 billion, and later the same year, it unsuccessfully attempted to go public after being valued at $47 billion in January 2019.
Investors were unimpressed when they discovered that the company was losing a significant amount of its market value due to the decision of its founder and CEO, Adam Neumann. Its downward spiral was eventually reported in both WeWork: Or the Making and Breaking of a $47 Billion Unicorn, a documentary to be released on Hulu, and in WeCrashed, an Apple TV podcast that has developed into a TV show.
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