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Is Softbank also a majority bondholder of WeWork? AFAIK the shareholders (ie mostly Softbank in this case) are last in line during bankruptcy, well after other
by WJW 3y ago
Is Softbank also a majority bondholder of WeWork? AFAIK the shareholders (ie mostly Softbank in this case) are last in line during bankruptcy, well after other creditors like employees, suppliers and bondholders.
- thiago_fm 3y agoYes, they are a majority, so it's probably of their interest that the company doesn't cease to exist, as it would imply an even bigger loss. I think it's very likely a takeover. Right now it costs nothing(~$100M) for SoftBank, but they'd rather let it go through bankruptcy as it will help the company to get rid of the bad part of WeWork. I'm not an investor in WeWork ATM, but I wouldn't mind to own some stocks once this is sorted out.
- d0gsg0w00f 3y agoEspecially since they may be poised to significantly reduce their costs with renegotiating leases while the commercial real estate market is in tatters.
- justincormack 3y agoNot a majority bondholder no, they have some debt as well as equity, and unsurprisingly the debt structure is complex and has already had some changes. Should be an interesting battle.
- pseingatl 3y agoJust out of curiosity, assuming no bankruptcy, why would a company convert equity to debt?