WeWork Explores Bankruptcy Loan Options Amid Landlord Dispute

Allen Matkins lawyer, Ivan Gold, was quoted in Reuters regarding WeWork’s bankruptcy loan options and landlord dispute. WeWork is considering a new bankruptcy loan due to slow progress in rent negotiations, according to an attorney for the company. WeWork's post-bankruptcy plan relies on significant rent cost reductions, and some landlords criticized the company's "hardball tactics," stating that bankruptcy law requires timely rent payments. WeWork's attorney acknowledged initial negotiation failures but noted improved success after withholding $33 million in January rent, while also considering a new bankruptcy loan that could be converted into equity post-bankruptcy.

The company is free to reject leases, but it cannot have it both ways by failing to pay rent while continuing to occupy property, landlord attorney Ivan Gold said.

"Withholding rent, or to quote a few of my clients, 'taking hostages,' is not conducive to negotiations," Gold said.

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