Yardi Systems Comments on Proposed Plan to Support WeWork in Its Emergence From Bankruptcy
April 30 2024 - 2:05PM
Business Wire
Yardi Has Made a Commitment to Provide DIP and
Exit Financing Through Its Investing Arm for WeWork if Plan is
Confirmed
Reinforces Support for the Co-Working Sector
and WeWork’s Future as a Successful Company
Yardi Systems, Inc. (“Yardi”, “we” or “us”) today commented on
the proposed plan of reorganization for WeWork, Inc. (“WeWork” or
the “Company”). Under the proposed plan – which is subject to
approval by WeWork creditors – Yardi’s wholly owned subsidiary
Cupar Grimmond, LLC (“Cupar Grimmond”) would become a majority
shareholder of WeWork following the Company’s successful emergence
from the Chapter 11 restructuring process. Existing significant
investors and other creditors of WeWork would hold the remainder of
the Company’s equity.
Yardi stated:
“As a leading global provider of software and software services
for commercial and residential property owners, Yardi is committed
to supporting the long-term success of WeWork and the co-working
industry. We believe a hybrid workplace is the model of the future,
and that we have the experience and innovative technology to help
power this transition.
We initially formed a technology partnership with WeWork in 2022
with the launch of the WeWork Workplace app, which enables
companies and employees to seamlessly work in traditional leased
and owned office buildings, flex and coworking spaces, or their
homes. Since then, we have been highly involved in scaling and
developing this software and additional WeWork technology services.
In 2023, we were approached to assist the Company by providing
capital through our investment arm, Cupar Grimmond, as part of
WeWork’s restructuring transaction. Following our participation, we
have played a supportive role as a senior secured lender during the
Chapter 11 process.
Yardi chose to invest in WeWork’s latest fundraise by providing
debtor-in-possession (“DIP”) and exit financing because we believe
the Company’s fundamental value proposition remains intact and that
it can have a successful future. Under the plan, WeWork would
emerge from bankruptcy with no debt, adequate working capital and
positive free cash flow. We intend to help drive the revitalization
of WeWork in a manner that sustainably serves the best interests of
its stakeholders – including the Company’s landlords. Importantly,
post-bankruptcy WeWork would be operated as a separate entity
managed at arms-length from Yardi’s core business.
We look forward to continuing to be a supporter of WeWork
throughout the remainder of the bankruptcy process and to
communicating further with the Company’s various constituencies at
the appropriate time.”
About Yardi
Celebrating its 40-year anniversary in 2024, Yardi® develops
industry-leading software for all types and sizes of real estate
companies across the world. With over 9,200 employees, Yardi is
working with our clients to drive significant innovation in the
real estate industry. For more information on how Yardi is
Energized for Tomorrow, visit yardi.com.
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Media Contact: Longacre Square
Yardi@Longacresquare.com