In a recent court filing, Adam Neumann, the founder of WeWork, has requested the assistance of a U.S. bankruptcy judge in his bid to reacquire the coworking business. Neumann’s new real estate company, Flow Global, has offered over $500 million to buy WeWork out of bankruptcy. However, Neumann alleges that WeWork has refused to engage with Flow Global, instead seeking to use its bankruptcy court case to approve a deal that would transfer control of the company to preferred buyers.
Neumann argues that WeWork’s refusal to engage with Flow Global is in violation of its obligation under U.S. bankruptcy law to maximize value for creditors. He has requested that the bankruptcy judge consider ordering WeWork’s management to provide due diligence information to Flow Global as a condition for remaining in control of the company.
WeWork, on the other hand, has stated that it is focused on finalizing a deal with its existing lenders, which would allow the company to exit bankruptcy within the coming weeks. WeWork’s attorney has asserted that no bidder has offered a better deal than the $3 billion debt restructuring agreement with its lenders.
This development adds another layer of complexity to WeWork’s ongoing bankruptcy proceedings. The company, once valued at $47 billion, has faced significant challenges in achieving profitability, particularly due to the rise of work-from-home trends following the COVID-19 pandemic. The outcome of Neumann’s request and the fate of WeWork’s restructuring remain uncertain.
