Shared office space provider WeWork announced on Monday a settlement with its junior creditors and a new cash infusion from its senior lenders, moving ahead with a bankruptcy deal that rejects a $650 million offer from co-founder and former owner Adam Neumann.
During a hearing in Newark, NJ, US Bankruptcy Judge John Sherwood signed off on the New York-based, SoftBank-backed company sending its restructuring plan to a creditor vote, putting it on track to exit bankruptcy by the end of May.
The restructuring, now supported by all of WeWork’s major creditors, would hand the company’s equity to its senior lenders and cancel its $4 billion in debt.
The revised bankruptcy deal includes up to $450 million in new funding from SoftBank, a group of senior bondholders that includes King Street Capital, and Cupar Grimmond, a company affiliated with WeWork technology partner Yardi Systems.
After the restructuring, Cupar Grimmond would own a majority of WeWork’s equity, and SoftBank would have 16.5%, although SoftBank’s share could rise to as high as 36%, depending on how WeWork decides to equitize some separate credit facilities it has funded.
Steven Serajeddini, a lawyer for WeWork, said at Monday’s hearing that the company reached settlements over the weekend to win the support of two factions of junior creditors that previously opposed its restructuring deal, including a court-appointed creditors committee and a group of bondholders including Antara Capital. In exchange for their support, WeWork agreed to pay $32.5 million to its junior creditors, including $8.5 million to the bondholders.
WeWork used its bankruptcy to negotiate a significant reduction in future rent costs from its landlords, ultimately reaching deals to save $8 billion. WeWork canceled leases at about 160 of its 450 locations during bankruptcy.
Neumann and his new company, Flow Global, have argued that WeWork is selling its equity to “hand-picked” insiders instead of trying to get the highest bid.
Neumann’s attorney Susheel Kirpalani said at Monday’s hearing that the $450 million provided by WeWork’s lenders was really a sale of the company’s equity, disguised as a bankruptcy loan. If the company was for sale, it should have engaged with Neumann, Kirpalani said.
The judge disagreed, saying that WeWork’s secured lenders had the right to reject Neumann’s offer if it was not high enough to buy out the debt they are owed. Sherwood said he would not “second-guess” the decision by those lenders to take WeWork equity in exchange for canceling the debt they are owed.
“There might be a number at which the secured lenders would cash out, but we know now it’s not $650 million,” Sherwood said.
WeWork, once valued at $47 billion, expanded at breakneck speed but racked up steep losses before filing for bankruptcy protection in November 2023. The company estimates that its post-bankruptcy equity is worth about $750 million.
All 14 children arrested on suspicion of manslaughter after a boy died in a fire have been released on police bail, officers said.
Layton Carr, 14, was found dead near the site of a fire at Fairfield industrial park in the Bill Quay area of Gateshead on Friday.
Northumbria Police said on Saturday that they had arrested 11 boys and three girls in connection with the incident.
In an update on Sunday, a Northumbria Police spokesman said: “All those arrested have since been released on police bail pending further inquiries.”
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Teenager dies in industrial estate fire
Firefighters raced to the industrial site shortly after 8pm on Friday, putting out the blaze a short time later.
Police then issued an appeal for Carr, who was believed to be in the area at that time.
In a statement on Saturday, the force said that “sadly, following searches, a body believed to be that of 14-year-old Layton Carr was located deceased inside the building”.
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David Thompson, headteacher of Hebburn Comprehensive School, where Layton was a pupil, said the school community was “heartbroken”.
Mr Thompson described him as a “valued and much-loved member of Year 9” and said he would be “greatly missed by everyone”.
He added that the school’s “sincere condolences” were with Layton’s family and that the community would “rally together to support one another through this tragedy”.
A fundraising page on GoFundMe has been set up to help Layton’s mother pay for funeral costs.
Image: Pic: Gofundme
Organiser Stephanie Simpson said: “The last thing Georgia needs to stress trying to pay for a funeral for her Boy Any donations will help thank you.”
One tribute in a Facebook post read: “Can’t believe I’m writing this my nephew RIP Layton 💔 forever 14 you’ll be a massive miss, thinking of my sister and 2 beautiful nieces right now.”
Detective Chief Inspector Louise Jenkins, of Northumbria Police, also said: “This is an extremely tragic incident where a boy has sadly lost his life.”
She added that the force’s “thoughts are with Layton’s family as they begin to attempt to process the loss of their loved one”.
They are working to establish “the full circumstances surrounding the incident” and officers will be in the area to “offer reassurance to the public”, she added.
A cordon remains in place at the site while police carry out enquiries.
Football bodies could be forced to pay towards the care costs of ex-players who have been diagnosed with brain conditions, under proposals set to be considered by MPs.
Campaigners are drafting amendments to the Football Governance Bill, which would treat conditions caused by heading balls as an “industrial injuries issue”.
The proposals seek to require the football industry to provide the necessary financial support.
Campaigners say existing support is not fit for purpose, including the Brain Health Fund which was set up with an initial £1m by the Professional Footballers’ Association (PFA), supported by the Premier League.
But the Premier League said the fund has supported 121 families with at-home adaptations and care home fees.
From England‘s 1966 World Cup-winning team, both Jack and Bobby Charlton died with dementia, as did Martin Peters, Ray Wilson and Nobby Stiles.
Image: Neil Ruddock speaks to Sky’s Rob Harris outside parliament
Ex-players, including former Liverpool defender Neil Ruddock, went to parliament last week to lobby MPs.
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Ruddock told Sky News he had joined campaigners “for the families who’ve gone through hell”.
“A professional footballer, greatest job in the world, but no one knew the dangers, and that’s scary,” he said.
“Every time someone heads a ball it’s got to be dangerous to you. You know, I used to head 100 balls a day in training. I didn’t realise that might affect my future.”
A study co-funded by the PFA and the Football Association (FA) in 2019 found footballers were three and a half times more likely to die of a neurodegenerative disease than members of the public of the same age.
‘In denial’
Among those calling on football authorities to contribute towards the care costs of ex-players who have gone on to develop conditions such as Alzheimer’s and dementia is Labour MP Chris Evans.
Mr Evans, who represents Caerphilly in South Wales, hopes to amend the Bill to establish a care and financial support scheme for ex-footballers and told a recent event in parliament that affected ex-players “deserve to be compensated”.
Greater Manchester Mayor Andy Burnham, who helped to draft the amendment, said the game was “in denial about the whole thing”.
Mr Burnham called for it to be seen as “an industrial injuries issue in the same way with mining”.
A spokesperson for the FA said it was taking a “leading role in reviewing and improving the safety of our game” and that it had “already taken many proactive steps to review and address potential risk factors”.
An English Football League spokesperson said it was “working closely with other football bodies” to ensure both professional and grassroots football are “as safe as it can be”.
And that comes in the context of increased warnings from government and the security services about Iranian activity on British soil.
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Counter terror officers raid property
Last year, the director general of MI5, Ken McCallum, said his organisation and police had responded to 20 Iran-backed plots presenting potentially lethal threats to British citizens and UK residents since January 2022.
He linked that increase to the ongoing situation in Iran’s own backyard.
“As events unfold in the Middle East, we will give our fullest attention to the risk of an increase in – or a broadening of – Iranian state aggression in the UK,” he said.
The implication is that even as Iran grapples with a rapidly changing situation in its own region, having seen its proxies, Hezbollahin Lebanon and Hamas in Gaza, decimated and itself coming under Israeli attack, it may seek avenues further abroad.
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The government reiterated this warning only a few weeks ago, with security minister Dan Jarvis addressing parliament.
“The threat from Iran sits in a wider context of the growing, diversifying and evolving threat that the UK faces from malign activity by a number of states,” Jarvis said.
“The threat from states has become increasingly interconnected in nature, blurring the lines between: domestic and international; online and offline; and states and their proxies.
“Turning specifically to Iran, the regime has become increasingly emboldened, asserting itself more aggressively to advance their objectives and undermine ours.”
As part of that address, Jarvis highlighted the National Security Act 2023, which “criminalises assisting a foreign intelligence service”, among other things.
So it was notable that this was the act used in one of this weekend’s investigations.
The suspects were detained under section 27 of the same act, which allows police to arrest those suspected of being “involved in foreign power threat activity”.