SoftBank reportedly hired restructuring and bankruptcy bankers to help revive WeWork

- SoftBank hired Houlihan Lokey, a restructuring and bankruptcy advisory firm, to revive WeWork, Bloomberg wrote.
- The firm is going through its portfolio and reviewing the loss-making areas of the company.
- WeWork could run out of cash by mid-November, is weighing financing options from JPMorgan and SoftBank.
- For more of Business Insider's WeWork coverage click here.
SoftBank hired that specialize in restructuring in order to save WeWork from bankruptcy.
According to Bloomberg, citing unnamed sources, SoftBank hired Houlihan Lokey, an American investment bank that specializes in bankruptcy, to try and revive the office rental company.
The paper said that Houlihan was assessing different ways for WeWork to cut liabilities, and would be going through its portfolio, one property at a time, and assess which assets were loss-making."Houlihan is working on cutting liabilities as WeWork mulls a separate deal that could hand control of the struggling office-sharing company to SoftBank, its biggest shareholder, according to the people," Bloomberg wrote.
Earlier this week, the Guardian reported that the WeWork was cutting 2000 jobs as soon as next week, as the company tries to battle through the crisis it's currently facing.
While by Tuesday evening WeWork's bonds dropped to even further lows, as investors feared that the real estate company wouldn't be able to pay back its own debt.
All of this comes amid reports that WeWork is weighing up a choice of JPMorgan or SoftBank to save the company,
The JPMorgan option would refinance the company to the tune of $5 billion which would include a $2 billion unsecured payment-in-kind, with a hefty 15% coupon, Bloomberg wrote.
While the SoftBank option would mean the Japanese firm effectively taking control of WeWork, as it would invest a $10 billion controlling stake in the firm. SoftBank previously valued WeWork at $47 billion, highlighting its fall from grace since failing to go public.It has been reported that WeWork is currently favoring the JPMorgan option, despite SoftBank already investing billions in the firm.
Business Insider has reached out to WeWork for comment. SoftBank and Houlihan Lokey declined to comment to Bloomberg.

New advertisement for Ryan Reynolds' Aviation Gin trolls the widely-mocked Peloton holiday ad

THE SOCIAL COMMERCE REPORT: Inside the fast-developing opportunity to reach billions of consumers' wallets using social platforms

T-Mobile is outpacing the rest of the Big Four US carriers on value, loyalty, and satisfaction - here's what consumers say is most important when selecting a mobile provider

Video evidence appears to show Iranian security forces 'shooting to kill' protesters after demonstrations broke out, UN says

AI IN TELECOMMUNICATIONS: Why carriers could lose out if they don't adopt AI fast - and where they can make the biggest gains
Raghuram Rajan's warning about Mudra loans last year may be coming true
Microsoft’s four-day work week idea will be good for Indians— but there is a lot to be fixed before that
Dues, death and an investigation — all that went wrong with OYO hotels in the last 6 months
Three wise men who exited Vodafone India just in time to make millions
SAIF Partners invested in Swiggy when they just had a landing page – today they are going after more seed stage startups, here’s why
Here's why North Korean hackers attacked India's nuclear power plant
Not just Tata Motors, a lot of other companies are excited by Jaguar Land Rover numbers
Surprise, surprise – Indians want censorship for Netflix, Amazon Prime, Hotstar
SIGN IN WITH
FacebookGoogleEmail