WeWork Inc (NYSE:WE) shareholders got some welcome relief after what has been a rough 2022 and start to 2023 for the company’s stock price.
The much-maligned coworking space company is expected to reach a financial restructuring deal that would see a major investor, SoftBank Group Corp, convert about $1 billion of debt into equity, according to reports.
The New York company is also expected to secure more than $1 billion in funding and capital commitments, primarily debt, according to sources familiar with the matter.
The deal could be announced Thursday, and shares have surged more than 13% to $0.98 in anticipation.
Shareholders are looking for any reason for optimism after WeWork’s stock lost 83% last year and another 40% thus far in 2023.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel