Exclusive: WeWork owner creates committee to decide on financing lifeline

NEW YORK: WeWork owner, The We Company, has formed a special board committee to consider proposals for a US$5 billion financing lifeline from its largest shareholder SoftBank Group Corp and its main lender JPMorgan Chase & Co , four people familiar with the matter said on Wednesday.

The committee will only have two members - both We Company board directors with the task of representing the interests of all investors in the company, the sources said. WeWork cancelled its IPO following investor concerns about mounting losses, its business model and the way the company was being run. Its estimated valuation dropped from US$47 billion in January to as low as US$10 billion last month.

WeWork may seek to combine the SoftBank and JPMorgan proposals in some form, according to the sources. Neumann's shares used to have the same voting power as 20 We Company common shares, before he agreed to partially reduce his grip last month - reducing the ratio to 3-1 - in an unsuccessful attempt to make an IPO more attractive to investors.

Singapore Latest News, Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Private market gives WeWork shares the cold shoulderTrading in shares of WeWork in the private over-the-counter (OTC) market has almost ground to a halt, underscoring a loss of investor confidence ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

WeWork bond prices at record low on possible debt-heavy financing dealThe price of WeWork's U.S. junk bond fell to an all-time low on Tuesday, last trading at 78 cents on the dollar, as the company weighed financing ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Goldman profit falls short on weak M&A advisory; WeWork weighsGoldman Sachs Group Inc reported a 27per cent slump in quarterly profit on Tuesday, hit by lower fees from advising on deals and weakness in ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

WeWork bond prices at record low on possible debt-heavy financing dealThe price of WeWork's U.S. junk bond fell to an all-time low on Tuesday, last trading at 78 cents on the dollar, as the company weighed financing ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Private market gives WeWork shares the cold shoulderTrading in shares of WeWork in the private over-the-counter (OTC) market has almost ground to a halt, underscoring a loss of investor confidence ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Goldman profit falls short on weak M&A advisory; WeWork weighsGoldman Sachs Group Inc reported a 27per cent slump in quarterly profit on Tuesday, hit by lower fees from advising on deals and weakness in ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »