A U.S. bankruptcy judge on Thursday approved WeWork’s Chapter 11 bankruptcy plan, allowing the shared office space provider to eliminate $4 billion in debt and transfer its shares to a group of lenders and real estate technology company Yardi Systems.
WeWork used its bankruptcy to negotiate significant reductions in its future rent costs with its landlords, ultimately reaching deals that will save it $8 billion in future rent costs.
WeWork terminated leases for about 160 of its 450 locations during bankruptcy.
WeWork rejected an alternative takeover bid put forward by co-founder and former CEO Adam Neumann.
The company said Neumann’s offer was not enough to satisfy WeWork’s creditors, who wanted to buy their shares as part of the bankruptcy proceedings.
