WeWork Rejects Adam Neumann's Acquisition Bid, Unveils Restructuring

An anonymous reader quotes a report from Business Insider: WeWork has a new plan to get out of bankruptcy -- and it doesn't involve Adam Neumann, who wants to acquire the flexible office provider he created. WeWork announced Monday that it has raised $450 million in equity funding, which it could use to emerge from Chapter 11. The company also said it has a plan in place to 'eliminate all of its $4 billion of outstanding, prepetition debt obligations.' A vote on the plan -- which has support from the owners of most of WeWork's debt -- is scheduled for May 30, according to Bloomberg.

The majority of the funding -- $337 million, to be exact -- would come from Cupar Grimmond, and SoftBank would still own a stake in the company, according to the outlet. But Neumann, who has recently expressed interest in purchasing WeWork for more than $500 million, doesn't plan to go down without a fight. 'After misleading the court for weeks, WeWork finally admitted it is trying to sell the company to a group led by Yardi for far less than we are continuing to propose,' Susheel Kirpalani, an attorney for Neumann's new real estate startup Flow Global, told Business Insider in a statement, adding, 'so we anticipate there will be robust objections to confirming this plan.'

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