Yardi to Become WeWork's Majority Shareholder After $450M Deal with Lenders

WeWork Inc. has reached a new restructuring agreement with its major financial supporters, as reported by the Financial Times. This deal aims to pull the workspace provider out of bankruptcy, sidelining a financing proposal from co-founder Adam Neumann.

Key Terms of the Agreement

Under the approved outline by a U.S. Bankruptcy Court judge, senior creditors will inject $450 million into WeWork. Yardi Systems, controlling 35 million shares of WeWork through Cupar Grimmond LLC, will become the majority stakeholder with a $337 million investment, granting it 60% control of WeWork. Another group of hedge funds will contribute $113 million in exchange for a 20% stake. Entities holding $4 billion of pre-bankruptcy debt, including SoftBank, will own the remaining 20% of the company. The new WeWork will have no outstanding debt.

Legal Perspective and Neumann's Offer

U.S. Bankruptcy Judge John K. Sherwood has deferred to the lenders to negotiate with Neumann, who proposed buying WeWork for $500 million and is reportedly planning to contest the restructuring deal. Creditors are scheduled to vote on the agreement by May 30. This restructuring deal aims to provide WeWork with a fresh start and stability, moving it towards financial recovery after its bankruptcy filing.