[bctt tweet=”According to reports, the We Company does not have enough operating capital to make it through November, and its lenders are scurrying to put together a bailout.” username=”allwork_space”]
JPMorgan Chase, who has invested in WeWork for several years, is leading the group and is likely to put up the most capital.
When the We Company was still gearing for an initial public offering, JPMorgan and Goldman Sachs were set to be its financial backers. The two banks had promised to lend $6 billion to WeWork contingent upon the firm raising $3 billion during its IPO.
Since the IPO failed and co-founder Adam Neumann was ousted as CEO, Bloomberg reported that the company had just enough capital to last through the winter.
One factor that is potentially pushing WeWork closer to the brink of bankruptcy is a previous bond offering where it promised to keep $500 million in cash on its books. Those bonds have been downgraded to junk status by several credit agencies.