FAST FIVE: WeWork Could Run Out Of Cash By Next Month, Seeks Immediate Bailout
WeWork Could Run Out Of Cash By Next Month, Seeks Immediate Bailout Investment banks behind WeWork are panicking as it seems a bailout of the company could be imminent, reported Financial Times.
WeWork had been counting on an initial public offering — and a $6 billion loan contingent on a successful IPO — to meet its cash needs, but that plan unraveled amid questions about its future profitability.
…it needs new financing before the end of November to avoid running out of money, two people familiar with the matter said.
Last month's decision to abandon the IPO deprived the company of $3 to $4 billion in funding and $6 billion in a loan package investment banks promised if it went public.
Yet its tenants are committed to paying only $4 billion, and on average have leases for 15 months.” When does the WeWork real estate liquidation sale begin – zerohedge (@zerohedge) September 25, 2019 With the equity market window shut, and credit markets starting to crack, something that we noted on Thursday, the next question is if WeWork gets a bailout next month.