(Reuters) – SoftBank Group Corp. (A). (9984.(T), it is ready for a funding package for the WeWork Companies Inc., which provides for the control of the shared office space company, a person familiar with the matter said.
FILE PHOTO: A man walks into a WeWork space in the borough of Manhattan in New York City, New York, New York, USA, October 4, 2019. REUTERS/Carlo Allegri/Photo File
The package would be to substantially increase the participation of SoftBank, which already owns about a third of WeWork, and will continue to dilute the impact of the co-founder, Adam Neumann, said the person, who declined to be identified because of the sensitivity of the matter.
Reuters reported that SoftBank is in negotiations to create a $1 billion investment as well as you, WeWork has to go through a major restructuring.
Without a fresh input of money, WeWork risk of running out of money as early as the end of October, the person said.
WeWork has been working with JPMorgan Chase & Co (JPM.(N) in terms of the $3 billion of debt, the deal after a planned initial public offering has been filed within the last month, as investors worried about how he was being valued and its business model, Reuters reported last week.
“WeWork has been maintained to a large Wall Street financial institution to arrange a loan,” and a WeWork spokesperson for the police said. “About 60 sources have a non-disclosure agreement is signed and a meeting with the senior management of the company and its bankers, over the course of the last week, and the week to come.”
WeWork, a net loss of $1.9 billion in 2018, and it burned up due to $ 2.36 billion in cash in the first six months of this year, according to the documents.
In the past few weeks, the global credit rating agencies-Standard & Poor’s ratings service and Fitch Ratings have also downgraded WeWork’s credit ratings deeper into junk territory, while the company’s junk bond is trading at an all-time low.
WeWork last month to replace a co-founder of Stand down as CEO, insiders Artie Minson, and Sebastian Gunningham participate in joint CEO roles.
The pair have spoken about the need to return to the WeWork is the core business of the hiring out of a trendy office space for freelancers and companies. That would be to pull the company back from the secondary Construction had forayed into, such as schools, apartment buildings, and businesses.
Reporting by Josh Franklin in New York; additional reporting by Anirban Sen in Bangalore, india, and Carl O’donnell in New York; Editing by Daniel Wallis and Gerry Doyle