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WeBroke! WeWork Announces Mass Lease Renegotiations While CEO Projects Optimism

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Amid staggering losses, speculation of bankruptcy , and still crashing stock prices, WeWork held a brief conference call with landlords Wednesday morning to announce it will renegotiate most of its leases, as reported by The Real Deal. This move is an effort to address its high leasing costs and exit underperforming locations, globally.

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Creditors Pressure WeWork to Evaluate Neumann’s Flow Proposal During Bankruptcy Challenges

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However, according to a report published by The Real Deal , WeWork’s unsecured creditors, including many of its landlords, allege that the bankruptcy cases are at a dramatic point. It’s reported that the unsecured creditors claim WeWork has not secured the necessary financing to successfully exit bankruptcy.

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WeWork Squandered Past Rescue Offers

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What’s going on: WeWork’s steep downward spiral has continued as the share price is now below 20 cents, and reports from the New York Times and Business Insider indicate that the company may have squandered previously offered rescue options, leaving bankruptcy as one of the only choices left.

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WeWork’s Missed Payments Have Consequences

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This move by Fitch suggests that a “default-like” process has already commenced for WeWork, as reported by the The Real Deal. The company’s decision to hold payments was reportedly not due to a lack of funds, but was intended as a strategic decision to initiate negotiations with lenders.

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Japan Contemplates Substantial Wage Increases to Combat Deflation

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This bold proposal, as reported by Reuters , marks a potential turning point for the Bank of Japan’s monetary policy and has far-reaching implications for the nation’s workforce. This wage hike initiative represents a departure from Japan’s long-standing battle with stagnant wages and deflation.

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WeWork’s Shaky Financials Spark Concern for NYC Real Estate Market

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In New York City, WeWork is one of the largest tenants, with over 70 leases spread across various landlords, according to Forbes. It’s reported that the coworking company has amended over 590 of its leases since 2019, in addition to partial terminations to reduce the company’s total lease space.

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S&P Drops WeWork’s Credit Rating, Again

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What’s going on: Following WeWork’s plea with shareholders to approve a reverse stock split – a move that would consolidate the company’s shares into fewer higher-priced stocks – the Credit Rating Agency S&P Global Ratings chose to downgrade the company to an SD rating.