Restoration of WeWork as the official name is the most symbolic effort to date by management installed last year by majority owner SoftBank Group Corp. to focus on its core office-sharing business.
The company told employees that it cut its cash burn rate almost in half to $671 million from the end of last year
The company sees a new opportunity in the flexible workspace industry in India and around the world.
It will use the funds for prioritising growth in the Indian market over the next 36 months, the company has said.
Cash and unfunded cash commitments were $3.9 billion as of March, Chief Financial Officer Kimberly Ross said in the email.
A special committee of WeWork board members filed a motion in Delaware on Monday to prevent it from being disbanded, as it pursues legal action against majority owner SoftBank Group Corp
The tender offer was part of a $9.6 billion rescue financing package that SoftBank agreed with WeWork in October and gave it control of the company. Since then, WeWork's occupancy rates have plummeted amid the COVID-19 pandemic.
SoftBank maintained its forecast of a record annual operating loss of 1.35 trillion yen announced earlier this month as bets via the $100 billion fund sour.
A special committee of WeWork board members on Monday rejected an assertion by SoftBank Group Corp that it does not have authority to represent the interests of minority shareholders of the office-sharing startup.
The Ritesh Agarwal-backed company, once touted by Son to overtake the biggest hotel chains, has frozen operations across the world.
Earlier in April, SoftBank said it had terminated the tender offer for additional WeWork shares agreed last year with shareholders, plunging the startup further into crisis.
The beleaguered company, which was already struggling with a bout of issues is now facing an existential crisis as most of its office buildings are now virtually empty due to COVID-19.
WeWork told bond investors in a letter reviewed by Reuters that it is in a sound finacial position to execute its plan through 2024.
The stock purchase agreement was a part of the plan to rescue WeWork, which has been struggling after its failed IPO.
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He is believed to have done so in a bid to secure his place as the number two in the Japanese firm after SoftBank chairman Masayoshi Son.
With the launch of the two new centres, WeWork India now has over 57,000 desks in 34 locations across NCR, Mumbai, Bengaluru, Pune and Hyderabad.
WeWork’s IPO was shelved last year and the company recorded a steep plunge in valuation, to less than $8 billion from $47 billion.
WeWork currently owns 59 percent of WeWork China, with the remainder held by other investors including SoftBank, Hony Capital and Trustbridge.
In future, it is very likely that investors will put in a lot of checks and balances before making such investments.
The Japanese technology conglomerate is now likely to enter the new year without the WeWork financing in place, the people said, adding the banks are also concerned about the risks involved in rescuing the U.S. office-sharing startup.
The credit line is part of SoftBank Group Corp's $9.5 billion bailout that was announced in October when money-losing WeWork was on the brink of running out of cash after its plans to go public were abruptly withdrawn a month earlier.
The tender offer to the founders, investors and employees owning stock was expected to launch earlier this month but was delayed after SoftBank sought technical revisions to the offer documents, according to the sources.
Maurice Levy, chairman of ad agency Publicis Groupe SA, was named interim chief marketing and communications officer
The long-anticipated layoffs are the biggest move yet by Japanese technology conglomerate SoftBank Group Corp, which is providing a $9.5 billion lifeline and will soon own about 80 percent of WeWork's shares, to refocus the company on its core business.