A panel of lower-ranking creditors has demanded WeWork to negotiate with potential buyers, including the shared office space provider’s co-founder Adam Neumann, according to a Monday court filing. In addition to engaging potential buyers in negotiations, the company should be given a 30-day deadline to formulate a plan to exit bankruptcy, they added.
WeWork said at the start of April that it expects to emerge from Chapter 11 in the U.S. and Canada by May 31, having negotiated more than $8B in future rental savings. WeWork’s restructuring efforts have hit a standstill, the filing said, as their financial flexibility diminishes, largely due to their failure to meet almost all the deadlines outlined in a provisional agreement with lenders and longtime backer SoftBank.
The committee of unsecured creditors wrote, “Worse and at the same time, the debtors continue to ignore potential alternative solutions, including those that could provide more meaningful recoveries to the debtors’ constituents and preserve the business as a going concern.”
