WeWork Bankruptcy Unveils Chicago's Alter Group as 2nd Highest Unsecured Creditor, Claiming Nearly $12M

WeWork's Chapter 11 bankruptcy filing unveils The Alter Group, a Chicago-based real estate firm, as the second-highest unsecured creditor, with nearly $12 million owed to them. Find out the details behind this financial ordeal and how it reflects Chicago's role in the WeWork fallout.

Chicago's Significant Claim

The Alter Group, based in Wilmette, is claiming approximately $11.9 million from WeWork, primarily related to lease fees and associated litigation. This substantial sum places The Alter Group just behind U.S. Trust Co., a New York-based entity, on WeWork's list of creditors with the largest unsecured claims, amidst the coworking giant's staggering $18.7 billion in liabilities.

Roots of the Dispute

The origins of this financial dispute trace back to WeWork's decision to close its 20 West Kinzie St. location, leaving an 80% vacant 17-story building with 12 years remaining on its lease. Despite WeWork's initial agreement on early termination fees, they fell behind on payments, prompting The Alter Group to initiate a lawsuit in September.

Chicago's WeWork Impact

While Chicago's involvement in WeWork's bankruptcy may seem relatively minor compared to other cities, it stands out with three firms collectively owed $17.1 million. Discover how Chicago's situation compares to other cities affected by WeWork's financial crisis.

Nationwide Consequences

Explore the nationwide implications of WeWork's bankruptcy, affecting cities like New York, Boston, Washington, D.C., and San Francisco, where creditors face significant losses. WeWork's restructuring plan is in motion, with potential repercussions for multiple locations across the U.S. and Canada.