Brigade, Sculptor Among Now-Bankrupt WeWork’s Biggest Creditors
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2023-11-17 03:19
Brigade Capital Management, Capital Research and Management Co. and Sculptor Capital are among now-bankrupt WeWork Inc.’s biggest creditors,

Brigade Capital Management, Capital Research and Management Co. and Sculptor Capital are among now-bankrupt WeWork Inc.’s biggest creditors, court papers show.

The firms are part of a group of seven asset managers and hedge funds that have banded together to negotiate with the the failed co-working firm. Together, they hold more than $1.1 billion of WeWork’s secured notes, according to a Thursday bankruptcy court disclosure.

Other members include King Street Capital Management, Aristeia Capital, Silver Point Capital and BlackRock Financial Management, Inc., according to the court filing.

By joining forces and sharing the cost of attorneys, such groups can hold significant sway in major corporate bankruptcies. Hashing out deals can take months, which can quickly rack up big professional fees.

Davis Polk & Wardwell, the law firm representing the group, declined to comment.

The co-working giant’s current plan involves converting billions of dollars of debt into equity, while wiping out shareholders and lower-ranking creditors. WeWork’s bankruptcy last week capped a wild few years for the co-working business, which was worth $47 billion at its peak.

The bankruptcy is WeWork Inc., 23-19865, U.S. Bankruptcy Court for the District of New Jersey (Newark).

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