WeWork Inc. said Tuesday that after restructuring lease agreements covering nearly 90% of its real-estate portfolio, it expects to come out of bankruptcy by the end of May.
The office-sharing company said it will save about $8 billion in future rent commitments through the restructured leases on 90% of the some 500 office locations in its portfolio.
"As a result of this dramatic reduction in future rent expenses and further improved operating efficiency, WeWork is on track to deliver strong and sustainable financial performance following the completion of its restructuring," the company said in a statement.
WeWork's stock (WEWKQ), which trades over the counter, was still inactive.
The company's agreements with landlords include about 150 locations for which lease terms will be amended, about 150 leases rejections or negotiated building exits, and about 150 leases that will remain unchanged.
"The size, scope, and complexity of our real estate restructuring is unprecedented in our industry, and we've made remarkable progress to date optimizing our building footprint," WeWork said.
The announcements come about five months after the company filed for bankruptcy, after years of financial turmoil led to an unmanageable debt burden. The company said it expects to emerge from bankruptcy "with little or no debt."
WeWork's announcement Tuesday doesn't include mention of Adam Newmann, its co-founder and former chief executive, who had submitted a bid to buy the company for more than $500 million, as the Wall Street Journal reported last month.
As of Monday's stock closing price, the company had a market capitalization of $5.3 million, according to FactSet data, compared with a valuation of as much as $47 billion about five years ago.
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