Business
Report: WeWork co-founder Adam Neumann may have to unload property to pay off a giant loan
Adam Neumann may be out of the daily flow of WeWork, but he seemingly remains top of mind to some of the company’s bankers.
According to a new Business Insider piece, Neumann is working with JPMorgan, UBS and Credit Suisse to consider new terms for a $500 million loan that he took out before WeWork filed to go public, and from which Neumann has already drawn down $380 million. Because he can no longer pay the loan with proceeds from selling WeWork shares publicly (it yanked its S-1 filing earlier this week), he may have to put up some of his properties or other assets as collateral for the loan, according to one of BI’s sources.
“No terms have been set,” a spokeswoman for Neumann tells the outlet.
Per earlier reports, Neumann has plenty to offload if it comes to it, having acquired numerous residential and commercial properties over the years.
Among his reported investments is a $10.5 million Greenwich Village townhouse; a farm in Westchester, New York; a home in the Hamptons, where he reportedly weathered the storm with his family ahead of resigning as CEO last week; and a $21 million, 13,000-square-foot house in the Bay Area with a guitar-shaped room.
According to an earlier WSJ report, Neumann also bought several commercial properties through investor groups that he leased back, in some cases, to WeWork.
WeWork and Neumann have both enjoyed a close relationship with JPMorgan in recent years. As recently reported in The New York Times, JPMorgan “lent Mr. Neumann money personally (with his inflated shares as collateral), provided equity and debt for the company, served as a corporate adviser for the I.P.O. and secured nearly $6 billion in financing as part of the now scotched offering.”
-
Entertainment7 days ago
NASA discovered bacteria that wouldn’t die. Now it’s boosting sunscreen.
-
Business6 days ago
Tesla drops prices, Meta confirms Llama 3 release, and Apple allows emulators in the App Store
-
Business5 days ago
TechCrunch Mobility: Cruise robotaxis return and Ford’s BlueCruise comes under scrutiny
-
Entertainment6 days ago
‘The Sympathizer’ review: Park Chan-wook’s Vietnam War spy thriller is TV magic
-
Business4 days ago
Tesla layoffs hit high performers, some departments slashed, sources say
-
Business5 days ago
Meta to close Threads in Turkey to comply with injunction prohibiting data-sharing with Instagram
-
Entertainment4 days ago
ChatGPT vs. Gemini: Which AI chatbot won our 5-round match?
-
Business3 days ago
Former top SpaceX exec Tom Ochinero sets up new VC firm, filings reveal