WeWork
has entered into a seven-day forbearance agreement with its noteholders after skipping interest payments earlier this month.
The co-working company disclosed Tuesday that it reached the agreement following the expiration of the 30-day grace period it was given to make the missed payments without being considered in default.
WeWork and its lenders struck the deal because lease negotiations and active discussions about the company’s capital structure are ongoing, according to a securities filing. The bondholders won’t exercise their rights and remedies while the agreement, which can be extended or terminated early, is in effect.
The New York-based company said on Oct. 2 that it would withhold interest payments while it works on restructuring its business and “rationalizing its real-estate footprint.”
WeWork warned in early August that it might not be able to continue operating and would restructure and renegotiate leases to become more profitable.
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