Some people never learn, and in that case, former WeWork CEO Adam Neumann, as reported by Andrew Ross Sorkin’s DealBook, teamed up with Dan Loeb’s Third Point to purchase WeWork out of bankruptcy.
Are you sitting down?
Adam Neumann wants to buy back WeWork. And he’s teaming up with Dan Loeb’s Third Point to do it.
Breaking in @DealBook this AM…https://t.co/xiS8OI4tl1
— Andrew Ross Sorkin (@andrewrsorkin) February 6, 2024
DealBook says Flow has already raised $350 million from the venture capital firm Andreessen Horowitz, which is revealed in a new letter that shows Third Point would help finance the transaction.
According to the letter, Neumann and Third Point have been stonewalled by WeWork for months in receiving any information to formulate a bid.
“We write to express our dismay with WeWork’s lack of engagement even to provide information to my clients in what is intended to be a value-maximizing transaction for all stakeholders,” the lawyers representing Neumann, Flow, and their affiliates wrote in the letter.
Neumann and Third Point have collaborated on a new bankruptcy financing package for the co-working company. Their offer aims to acquire either the entire company or its assets.
“Although my clients have attempted since December 2023 to obtain information necessary for an offer to purchase the Company or its assets and later to provide debtor-in-possession ( DIP ) financing to support the Company through the bankruptcy process, they still do not have access to that information,” the layers said.
The lawyers continued:
“This behavior has jeopardized the ability of the company to explore alternatives to the RSA and has failed to maximize value for all stakeholders the goal of any bankruptcyprocess. This failure was underscored by the Company’sown advisors in Court today, wherethey explained that WeWork now needs to obtain additional financing and that it’s negotiations with its landlords have resulted in only seven successful lease amendments .”
Currently, court documents propose that WeWork’s bankruptcy plan hands over the company to most senior debt holders, including those holding its credit line, first-lien notes, and second-lien notes. This would mean third-lien noteholders and unsecured creditors are wiped out.
Last fall, WeWork declared bankruptcy. Neumann resigned as CEO in 2019 following the startup’s unsuccessful attempt to launch an IPO, which marked the beginning of its dramatic decline from a once-estimated value of $47 billion to its current state of bankruptcy.
The year is 2025: WeWork files for Chapter 22 bankruptcy after Adam Neumann successfully gets idiot VCs to give him another $10BN which he immediately cashes out.
The year is 2026: Adam Neumann uses the money to buy a bankrupt WeWork out of bankruptcy. Again
— zerohedge (@zerohedge) February 6, 2024
* * *
Here’s the full letter:
Tyler Durden
Tue, 02/06/2024 – 09:20
