WeWork stock continues its slide amid reports of bankruptcy talks

BlackRock Inc. (BLK), King Street Capital, and Brigade Capital are participating in lender talks about a potential chapter 13 bankruptcy filing for struggling hourly office rental company WeWork Inc. (WE), according to a report by The Wall Street Journal. WeWork was down 4% in premarket trades on Friday, as the stock extends its 97% drop in the past 12 months. The three Wall Street firms issued $1.2 billion in loans to WeWork in March, the WSJ report said. WeWork may potentially avoid bankruptcy if it manages to re-work terms for its high-cost office leases with landlords and reduce its rent costs, the report said, citing people familiar with the situation. WeWork on Aug. 18 announced 1-for-40 reverse stock split to regain compliance with NYSE listing rules. WeWork said recently it has substantial doubt about its ability to stay in business. WeWork CEO David Tolley said recently the company has exited or amended 590 leases over the past four years for roughly a $12.7 billion reduction in its fixed-lease payments.

-Steve Gelsi

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08-25-23 0736ET

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