© Reuters. FILE PHOTO: WeWork logos are seen at a WeWork office in San Francisco, California, U.S., September 30, 2019. REUTERS/Kate Munsch/File Photo
(Reuters) -WeWork Inc said on Monday it had decided to withhold interest payments of about $95 million related to some of its notes as it tries to improve its capital structure.
The SoftBank (TYO:)-backed flexible workspace provider has been in crisis since its plans to go public in 2019 imploded as investors became concerned about its large losses and began to doubt its business model. take long-term leases and rent them out. for the short term.
The company has a 30-day grace period to make interest payments before a default can be considered an “event of default,” WeWork said in a regulatory filing.
The company has liquidity to make interest payments and can decide to pay “in the future,” he added.
The company withheld interest payments of approximately $37.3 million payable in cash and $57.9 million in payment-in-kind (PIK) notes, each payable on Monday.
Earlier this year, the company raised “substantial doubt” about its ability to continue operations and conducted a one-for-forty reverse stock split to maintain its listing on the New York Stock Exchange.
The company, once a startup darling, said Monday it was continuing to take steps to implement its strategic plan and was focused on streamlining its real estate footprint.
The company’s shares fell about 2% in trading after the closing bell.
