WeWork emerges from bankruptcy, appoints Cushman & Wakefield Exec CEO

WeWork’s long-awaited exit from bankruptcy proceedings came with a twist, as it usually does with the enigmatic co-working company.

The firm emerged from Chapter 11 bankruptcy protection after seven months, CNBC reported, a day after a bankruptcy judge approved the company’s financial plan.

To make the move, WeWork hired former Cushman & Wakefield executive John Santora as chief executive, its fourth in five years. Santora, who spent 40 years at the commercial brokerage, most recently served as its three-state president.

“Thanks to the tireless efforts of the entire organization, we are well positioned to look with optimism to the future and realize the incredible potential of this great company,” Santora said in a statement. It may also have been thanks to the bankruptcy process, which allowed WeWork to cancel or renegotiate expensive, long-term leases that have made it unprofitable since its inception.

Santora replaces David Tolley, who became interim CEO a year ago when Sandeep Mathrani left. Tolley was lifted the interim tag in October as WeWork prepared for bankruptcy.

Last month, WeWork won approval for its plan to shed billions in debt and shed money-losing leases. Property management software firm Yardi Systems became the lead investor in the revamped company and installed CEO Anant Yardi on WeWork’s board.

The approved plan called for WeWork to eliminate $4 billion in debt and receive $450 million in new financing. The company fended off a last-minute bid by co-founder and former CEO Adam Neumann to buy it.

Of the new money, $337 million comes from Yardi and $112 million from bondholders.

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Once valued by its private investors at $47 billion, WeWork entered bankruptcy with $18.65 billion in debt and $15.06 billion in assets. In bankruptcy, it renegotiated 190 leases and dropped 170, reducing its annual rent and leasing expenses by more than $800 million.

The company’s portfolio now spans approximately 45 million square feet across 600 locations in 37 countries.

— Holden Walter-Warner