The commercial office leasing business WeWork declared bankruptcy this week. It reported $19 billion in debts against $15 billion in assets. Prolific investors like SoftBank Group Corp. and the Vision Fund are set to incur substantial additional losses on the venture.
The filing also disclosed a $432 million loan from SoftBank to co-founder Adam Neumann, backed by his now-nearly worthless WeWork stake.
SoftBank, the Japanese giant led by billionaire Masayoshi Son, stands to incur an estimated $11.5 billion in equity losses from WeWorks bankruptcy. An additional $2.2 billion in debt is also at risk.
The bankruptcy proceedings are projected to stretch over several months and will determine how the companys remaining assets are divided amon…
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