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Bengaluru: we work Inc is in talks with investors to restructure its outstanding debt of more than $3 billion and raise more cash New York The Times reported on Tuesday.
Shares of the company rose nearly 5% in extended trading following the news.
The company, which offers workstations, private offices and customized floors, had enjoyed a pandemic-driven shift to flexible work outside traditional offices, but is now gearing up for a potential fallout from a possible economic downturn.
In February, WeWork forecast weak current-quarter revenue in a sign that its business was feeling the heat of mass layoffs as companies reduce their real estate footprint.
The infusion of needed cash will likely give WeWork hundreds of millions of dollars to stay afloat for at least a few years, the NYT report cited people with knowledge of the talks.
Investors considering new investments in the company include Yardi, a real estate software provider in Santa Barbara, California, the people told the newspaper.
WeWork did not immediately respond to a Reuters request for comment.
There is no guarantee that the WeWork deal will close, and even if it does, it could take weeks, the report said, citing one of the people.
of japan softbank group Corp, which is both WeWork’s largest shareholder and its largest debtor, is playing a key role in the talks but is not expected to invest any additional money in the company, the report said.
In January, the New York-based company also planned to eliminate about 300 roles in the countries after announcing last year that it would exit about 40 underperforming US locations because of higher expenses and a stronger US dollar.
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