Stunning fall: WeWork files for bankruptcy
WeWork filed for Chapter 11 bankruptcy protection on Monday.
What happened: The co-working space operator failed to make required interest payments to bondholders last month, but then negotiated a pair of extensions that pushed the deadline to today.
- Shares were halted at market open today and didn't trade.
- CEO David Tolley warned in August that substantial doubt exists about WeWork's ability to continue as an ongoing concern.
By the numbers: WeWork once was valued at $47 billion by private market investors like SoftBank, and still was worth $9 billion when it agreed to go public two years ago via a blank-check company.
- Its market cap was south of $45 million on Friday, as shares closed at just 84 cents apiece.
- WeWork reported 777 locations in 39 counties, including 229 in the U.S., as of a June disclosure.
Details: The company has a restructuring support agreement (RSA) with 92% of its secured note holders, which will expedite the restructuring process, per a WeWork statement. The deal will "drastically" reduce the company's debt.
- "During this period, WeWork will further rationalize its commercial office lease portfolio while focusing on business continuity and delivering best-in-class services to its members, as global operations are expected to continue as usual, per the statement.
- WeWork's locations outside of the U.S. and Canada are not part of this process.
Go deeper: The fall and rise and fall of WeWork
Editor's note: This article has been updated with new details throughout.