Top 30 unsecured creditors in $19B WeWork bankruptcy

WeWork filed for bankruptcy protection in New Jersey yesterday, claiming $15 billion in assets and $18.66 billion in liabilities. The filing identified the top 30 unsecured creditors, which include top New York City landlords such as RFR Holding, Sapir Organization and William Gottlieb Real Estate.

WeWork filed 496 individual bankruptcy petitions, most of them for specific LLC entities that signed the leases. They are consolidated under the main filing, WeWork, Inc. 23-19865-JKS

Bankruptcy pdf: 1 Ch 11 We Work

The Wall Street Journal reported last week that WeWork was planning a bankruptcy filing.
The list of creditors appears to be organized by the entity level LLC and not the owner company, so companies such as RFR Holding may have additional exposure through other leases, in addition to the two listed on the top creditors list.

The list of creditors also excludes, for example, SL Green Realty, which sued WeWork on November 2, 2023, alleging the co-working firm had not complied with a $12.1 million payment schedule to terminate a lease, with just over $1 million remaining to be paid back.

According to the SL Green Realty lawsuit, “…[There was executed a] written lease agreement, dated as of November 15, 2016, as amended (the “Lease”), for certain office premises known as the eighth through eleventh floors, the entire penthouse, and a portion of the ground floor (as more particularly described in the Lease, the “Premises”) at 2-4 Herald Square…for a term expiring on February 29, 2036… Plaintiff, Tenant and Defendant entered into a written settlement, surrender, and release agreement dated as of April 5, 2023… Subsection 4(a)(i) of the Settlement Agreement states that, in partial satisfaction of Landlord’s Damage Claims, Defendant shall pay to Plaintiff, inter alia, the sum of $849,746.81 on or before September 1, 2023, and the sum of $317,497.71 on or before October 2, 2023… As of the date hereof, Defendant is in default of the Settlement Agreement for its failure to make all or any portion of Guarantor’s Settlement Payment.”

The Settlement Agreement states the total termination amount is $12 million: “Tenant and Guarantor shall pay a settlement payment to Landlord in the aggregate amount of $12,128,537.50 (the Settlement Payment) which amount shall be paid as follows: (i) Guarantor shall pay to Landlord the aggregate sum of$7.965,2 I 9.00 (“Guarantor’s Settlement Contribution..) in partial satisfaction of the Settlement Payment in () one (l) installment of $3,398.987.24 within five (5) Business Days of receiving Lender Consent. and () five (5) equal installments of $849. 746.81 on the following dates: ( I )May I. 2023., (2)June 1. 2023. (3) July 5. 2023. (4) August 1. 2023 and (6) September 1, 2023. and z) one ( 1) installment 0f $317.497.71 on October 2, 2023; and (ii) Tenant hereby authorizes Landlord to draw upon the letter of credit currently held by Landlord as security under the Lease in the amount of $4,163.3 18.50 and retain all proceeds thereof in partial satisfaction of the Settlement Payment in () one (l) draw of $532.249.10 on October 2. 2023. () four (4) equal draws of $849.746.81 on the following dates: (I)November 1, 2023. (2) December 1, 2023. (3) .January 2. 2024 and (4) February 1, 2024. and (z) one (I) draw of $232.081.66 on March I. 2024.”

Direct link to the property’s ACRIS page.