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WeWork Wrestles to Amend Leases as Landlords Seek Clarity on Restructuring Plan

WeWork entered bankruptcy looking to reject or amend leases that were fueling billions of dollars in losses at the flexible-workspace company. But more than two months into chapter 11, WeWork remains saddled with hundreds of leases that are straining its finances. The company has managed to reduce at least 16% or $3.7 billion of its long-term lease expenses through rejections and amendments, according to interviews with WeWork officials and its financial statements.  

In rejection situations, landlords are being asked to make significant concessions and would like to receive basic information such as a business plan. 

Attorney Douglas Rosner's courtroom argument is highlighted in The Wall Street Journal here.

"How will these concessions support, or achieve, a viable WeWork or reorganized WeWork at the exit?" Rosner said. “These are all basic questions that any investor would have in a reorganized company, and I think it’s time that we start sitting down at the table and hearing and being persuaded that it’s an investment worth making.”


real estate, office & industrial, article, commercial real estate workouts