Shulou(Shulou.com)11/24 Report--

CTOnews.com, Aug. 24, according to Reuters, WeWork has hired restructuring consultants to seek to avoid bankruptcy restructuring. Two weeks ago, WeWork warned that facing persistent losses and office space members continue to cancel leases, its "serious doubt" whether it can continue to operate, now "to the point of life and death" WeWork is trying to restructure to avoid bankruptcy.

WeWork has hired Hilco Global, a real estate consultant, and has again hired Alvarez & Marsal, a corporate management services consultancy, and Kirkland & Ellis, a law firm, to advise on options such as restructuring, Reuters said yesterday, citing people familiar with the matter.

It is reported that WeWork seeks to avoid applying to the court for bankruptcy reorganization under Chapter 11 (Chapter 11) of the bankruptcy law, hoping to carry out debt restructuring out of court without the help of the court. WeWork's ability to avoid bankruptcy depends largely on the Division's ability to terminate or renegotiate a large number of leases in the high-rent market.

After inquiry, CTOnews.com learned that this is the second time that WeWork will be restructured. In early August, WeWork added four directors to the board of directors, all of whom are "experts in the field of restructuring."

However, according to Reuters, a representative of WeWork issued a statement saying that the company will continue to invest in its products while taking necessary measures to reduce rents and rental costs. WeWork will continue to put its members first and will continue to operate and provide services to its members no matter what action may be taken in the near future.

WeWork's second-quarter revenue rose 4% year-on-year to $844 million (CTOnews.com Note: currently about 6.144 billion yuan), slightly below market expectations of $851 million (currently about 6.195 billion yuan), while net loss was $397 million (currently about 2.89 billion yuan), a year-on-year reduction of $238 million (currently about 1.733 billion yuan), according to the results. The adjusted EBIT loss is $36 million (currently about RMB 262 million), while the market expects an adjusted EBIT profit of $26.8 million (currently about RMB 195 million).

In the financial report, WeWork said that the company is facing continued losses and office space members continue to cancel the lease situation. The sustainability of the company depends on "the effectiveness of the next 12 months in cutting rental costs, controlling expenses and limiting capital expenditure, improving revenue levels and raising funds".

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