WeWork (NYSE: WE) has finally filed for bankruptcy.
The real estate giant late this evening announced that it has filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of New Jersey. The filing only applies to the firms U.S. based operations, with a separate filing to be made under the Companies Creditors Arrangement Act in Canada for its operations north of the border.
Global franchisees are said to be unaffected by the filings.
The decision to file for Chapter 11 bankruptcy is said to be part of a strategic reorganization process that the company is undertaking to “rationalize its lease portfolio,” while working to position the company for future growth. As part of the filing, the company has entered into a restructuring support agreement with holders representing 92% of its secured notes.
The company meanwhile says it remains open and operational throughout the process.
Documents on the bankruptcy filing can be found here.
WeWork last traded at $0.84 on the NYSE.
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