A service of

WeWork UCC brings BRG on board

WeWork’s official committee of unsecured creditors hired BRG has financial advisor, according to two sources. The retention complements the hiring of Paul Hastings as legal counsel, as reported. The seven-member committee formed last week and heard pitches for advisors on Monday (20 November).

The committee members include Computershare Trust Company, Nuveen Real Estate, Beacon Capital Partners, Carr Properties, Delaware Trust Company, ABM Industry Groups and Hudson Pacific Properties, according to court documents.

WeWork filed for bankruptcy on 6 November with a restructuring support agreement (RSA) that aims to slash the company’s debt by USD 3bn by equitizing its DIP facility, letter of credit facility and first and second lien notes. The debtor also plans to reject more than 60 leases. Roughly 92% of the issuer’s secured noteholders support the RSA, which contains a series of milestones including a 5 March 2024 deadline to confirm a plan and put it into effect.

The flexible office space provider received interim approval to use cash collateral during a hearing on 8 November and is slated to come back to court on 6 December for a “second-day” hearing on its motion to reject 69 leases and its motion to approve debtor-in-possession (DIP) financing, as reported.

WeWork leases approximately 700 office space locations that it rents to businesses and individuals in 34 countries. Valued at USD 47bn in 2019, the company was unable to complete a planned initial public offering that year as investors balked at the valuation. In 2021, the company did go public through a de-SPAC transaction at a valuation of USD 9.5bn. The COVID-19 pandemic created hard times for the commercial real estate market, necessitating a restructuring, the company said in court documents.

BRG did not return requests for comment.