WeWork seeks to avoid bankruptcy with restructuring, Bloomberg reports

WeWork is rounding up advisers for help with a restructuring as it struggles with a heavy debt load and poor financial performance, Reshmi Basu of Bloomberg reports, citing people with knowledge of the matter. The company has hired real estate adviser Hilco Global, once again tapped consultant Alvarez & Marsal and re-engaged law firm Kirkland & Ellis for advice on its options, sources told Bloomberg. WeWork is seeking to avoid a Chapter 11 bankruptcy filing and restructure its debts out of court, one of the people said. The company’s ability to avoid a bankruptcy filing will depend on whether it can terminate or renegotiate a substantial number of its leases in more expensive markets, the people said. In a statement to Bloomberg, WeWork said, “We will continue to invest in our product offerings while simultaneously taking necessary steps to reduce rent and tenancy costs. Our members remain our priority and, regardless of any near term actions we may take, we will continue to operate and serve them for the long term.” The stock in midday trading is down 16% to 11c.