© Reuters. A sign is seen outside the offices managed by WeWork in Philadelphia, Pennsylvania, U.S. September 30, 2019. REUTERS/Mark Makela
(Reuters) – WeWork Inc. said on Friday it had adopted a “poison pill” to prevent its shareholders from increasing their holdings, which would make it more difficult for the company to use its net operating loss (NOL) to cut taxes.
As of December 31, 2021, WeWork had about $6.9 billion of US federal NOL and $6.6 billion of state NOL that could be available to offset its future federal taxable income and state taxable income, the company said in a statement.
Last month, WeWork struck deals to reduce debt by about $1.5 billion and extend the expiration date of some maturities in a bid to preserve cash as the flexible workspace provider feels the heat of the summer. massive layoffs in your business.
The company, which offers workstations, private offices, and custom floor plans, had enjoyed a pandemic-driven shift toward flexible working outside of traditional offices, but is now bracing for the potential consequences of a potential economic downturn. .
The Tax Asset Preservation Plan is intended to reduce the likelihood of such a “change of ownership” in WeWork by discouraging any person or group from acquiring beneficial ownership of 4.9% or more of the outstanding Class A common shares of the company, the company added.
