WeWork is set to emerge from bankruptcy, aiming for a fresh start with reduced debt and fewer offices.
The company, which rents out shared office spaces, was founded in 2010.
It was once seen as the future of workspaces.
However, it faced significant losses due to aggressive global expansion.
Last year, WeWork filed for bankruptcy after a sharp decline in office space demand caused by the pandemic.
During bankruptcy proceedings, the company renegotiated its rental leases and collaborated with its lenders.
Post-bankruptcy, WeWork plans to operate 337 shared office spaces globally, roughly half the number it had in June 2023.
The US and Canada will remain its largest markets with over 170 locations.
A New Jersey bankruptcy court approved a plan on Thursday that eliminates $4 billion of the firm’s debt and reduces future rent obligations by $12 billion, or more than half, according to WeWork.
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The restructuring also introduces a new majority owner, Yardi Systems, which supplies software to office and residential landlords.
Yardi Systems, along with other investors, will provide $450 million in financing. Japan’s SoftBank Group remains a backer.
Judge John Sherwood approved the plan, stating it would make WeWork “a viable, successful company.”
WeWork expects the restructuring to be completed by mid-June.
The approval follows former WeWork boss Adam Neumann’s withdrawal of his effort to buy the company.
Neumann, who left the company after a failed attempt to list shares on the stock market exposed financial losses and raised questions about his leadership, had reportedly offered $500 million for WeWork.
This debacle was depicted in the Apple TV series “WeCrashed,” starring Jared Leto and Anne Hathaway.
