The warning comes mere months after WeWork struck a deal with some of its biggest creditors and SoftBank to cut its debt load by around US$1.5 billion ($2.02 billion) and extend other maturities. Its bonds trade at deeply distressed levels. The company’s 7.875% unsecured notes due 2025 last changed hands for 33.5 cents on the dollar, according to data from Trace.
WeWork Inc. shares plummeted more than 25% in extended trading after saying there’s “substantial doubt” about its ability to continue operating. The company cited sustained losses and cancelled memberships to its office spaces.
The co-working business will focus over the next 12 months on reducing rental costs, negotiating more favourable leases, increasing revenue and raising capital, WeWork said in a statement Tuesday.
