News & Announcements

Weil Guides SoftBank in Successful Restructuring of $4 Billion in WeWork Debt

Weil advised SoftBank Vision Fund II-2 L.P. and certain of its affiliates in the chapter 11 cases of WeWork Inc. and certain of its affiliates filed in the United States Bankruptcy Court for the District of New Jersey on November 6, 2023. Prior to WeWork’s bankruptcy case, SoftBank was the largest creditor and shareholder of WeWork.

In the months leading up to WeWork’s chapter 11 filing, the Company encountered increasing liquidity pressures, a difficult commercial real estate market, and a lease portfolio with many unprofitable locations due primarily to above-market rents. To address these near- and long-term challenges, SoftBank engaged with the Company and other key creditors to explore alternatives and develop a holistic restructuring transaction. These efforts ultimately resulted in the execution of a restructuring support agreement reflecting support from SoftBank and other secured creditors’ for a chapter 11 plan centered on the full equitization of the Company’s senior secured debt, elimination of the Company’s unsecured debt, and SoftBank’s continued support for a post-reorganization letter of credit facility. 

On May 30, 2024, the Bankruptcy Court confirmed the chapter 11 plan proposed by WeWork, paving the way for implementation of the Company’s comprehensive reorganization. The plan went effective on June 11, 2024, and WeWork has emerged from chapter 11 positioned for future success with an optimized lease portfolio and a debt-free balance sheet.

The Weil team was led by Gabriel Morgan, Managing Partner of the Firm’s Houston office and partner in Weil’s Restructuring Department, and Gary Holtzer, Co-Chair of Weil’s Restructuring Department, as well as Restructuring partner Kevin Bostel and Restructuring associate Eric Einhorn; Banking & Finance partner Heather Viets and Banking & Finance counsel Brendan Conley and Nick Nikic; Capital Markets partner Corey Chivers and Capital Markets associate Michael Cremers; Mergers & Acquisitions partner James Griffin; Private Equity Co-Head Kyle Krpata; Tax partners Stuart Goldring and Jason Vollbracht; and Complex Commercial Litigation partner Robert Berezin, and Complex Commercial Litigation counsel Taylor Dougherty.