There's a liquidity issue as well. The shareholders could get zeroed out because the debt could call in before the leases and freeholds can be sold. There is go

There's a liquidity issue as well. The shareholders could get zeroed out because the debt could call in before the leases and freeholds can be sold. There is good reason to think this is what will happen : - transaction times for large property transactions are on the scale of months for prime property in good times - wework has distorted the market with private capital potentially misallocated given the value reduction since softbank invested - in many places that wework has invested there is significant growth in commercial property inventory; for example London. This is because the property boom in China has changed the cost of building large office buildings (builders have worked out how to throw up a 50 floor tower fast and cheap) and consequently many old 10 floor plots are now becoming 50 floor plots If wework comes under pressure their assets may not only be over valued, they may find that it takes too long to find any buyers at all. In which case the assets belong to the banks. (edited formatting)