Softbank, which currently owns about 70% of the company, would retain an equity stake under the proposed restructuring.
“Softbank has been a true champion of this company,” WeWork attorney Steven Serajeddini said at Wednesday’s court hearing. “It has supported the company’s growth and now supports its restructuring.”
WeWork managed to renegotiate 590 leases before filing for bankruptcy, saving about $12.7 billion in future payments, but says it needs to do more to control rental costs.
The company has identified 69 leases it intends to break in the early days of its bankruptcy, including 41 in New York, and could try to reject more leases later. WeWork said it is trying to renegotiate the terms of other leases with 400 landlords.
WeWork on Wednesday will ask Bankruptcy Judge John Sherwood, who is overseeing the Chapter 11 proceeding, to approve the initial steps of its case, including routine requests such as continuing to pay its 2,700 employees and critical suppliers such as maintenance services. and building cleaning.