It was once the most valuable startup in the US
WeWork, a startup that provides physical and virtual shared workspaces to companies, has filed for bankruptcy to restructure its 19 billion dollar debt.
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In a statement released by WeWork, it was announced that the company has filed for bankruptcy under Chapter 11 of the US Bankruptcy Code to seek creditor protection for the restructuring of its debts. Creditors, who hold approximately 92 percent of WeWork's debt, have approved the restructuring plan.
The company's bankruptcy filing indicated that its assets are at the 15 billion dollar level. Reports in the US media last week stated that WeWork, once the most valuable startup in the US, was preparing to file a Chapter 11 petition, known as a restructuring bankruptcy, in New Jersey this week.
MISSED DEBT PAYMENT
WeWork had missed a debt payment that was due at the beginning of October. This situation triggered a 30-day countdown toward the official declaration of the company's bankruptcy. Last week, the company announced that it had reached an agreement with creditors to temporarily defer some of its debt payments and that the grace period was about to expire.