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WeWork Inc. (NYSE: WE) adopted a shareholder rights plan in its attempt to preserve its tax assets.
WeWork (WE) has adopted a shareholder rights plan designed to protect long-term shareholder value by preserving the availability of WeWork’s net operating loss carryforward (“NOL”), according to still statement.
The holders’ rights plan comes after the shared office space company entered into an agreement with a group of bondholders, an outside investor and SoftBank’s (OTCPK:SFTBY) Vision Fund to increase its liquidity and reduce your debt last month.
As of December 31, WeWork (WE) had approximately $6.9 billion of US federal NOL and $6.6 billion of state NOL that may be available to offset its future federal taxable income and state taxable income.
WeWork (WE) said its ability to use NOLs would be “substantially” limited if it experienced a “change of ownership.” of the company.
The Fiscal Assets Preservation Plan went into effect Friday and is scheduled to expire in one year.
On Monday, WeWork (WE) announced that its subsidiaries, the WeWork Companies and WW Co-Obligor, have commenced separate offerings to exchange any and all of the outstanding issuers’ 7.875% senior notes due 2025 and 5,875% senior notes. 00% maturing in 2025.
