Comment on WeWork plans to file for bankruptcy as early as next week, source says

Nighed@sffa.community ⁨1⁩ ⁨year⁩ ago

• tsonfeir@lemm.ee ⁨1⁩ ⁨year⁩ ago

  It’s a “we paid our execs all our cash” bankruptcy

  source
• wmassingham@lemmy.world ⁨1⁩ ⁨year⁩ ago

  It’s in the article:

  New York-based WeWork is considering filing a Chapter 11 petition in New Jersey

  source

  • Nighed@sffa.community ⁨1⁩ ⁨year⁩ ago

    And that’s the restructuring one? Does that let them escape or decrease their leases?

    (Not familiar with American bankruptcy laws(…or any bankruptcy laws))

    source

    • wjrii@kbin.social ⁨1⁩ ⁨year⁩ ago

      Yup, 11 is the restructuring one. Very little will happen automatically, but they will try to renegotiate their leases. In a world where big companies are adjusting to WFH being a norm, though no longer the the norm, this has the feeling of pissing on a house fire. When their Chapter 11 restructuring fails, that's when they'll file for Chapter 7 (liquidation)

      source
    • _haha_oh_wow_@sh.itjust.works ⁨1⁩ ⁨year⁩ ago

      This is the restructuring one.

      source
• Pons_Aelius@kbin.social ⁨1⁩ ⁨year⁩ ago

  Based on the debts they have, My guess it will be chapter 7 (wind up and liquidation) and not 11 (debt restructure).

  source

  • breadsmasher@lemmy.world ⁨1⁩ ⁨year⁩ ago

    so you didn’t read the article

    source

    • Pons_Aelius@kbin.social ⁨1⁩ ⁨year⁩ ago

      Just because WeWork are applying for 11, does not mean they will get it.

      The creditors have to make the call. If the debt holders do not think they will get more back via 7 they can refuse and push for 11.

      source