Restructuring firms circle WeWork Australia amid US bankruptcy proceedings
Australian subsidiaries of US companies in Chapter 11 typically fall into administration themselves. Whether the fallen co-working giant can avoid this fate remains a live question.
Restructuring experts are taking bets on the future of WeWork Australia's continued operations as its US control centre's Chapter 11 bankruptcy proceedings edge forward in New Jersey.
International subsidiaries of companies in Chapter 11 proceedings typically fall into administration themselves. But whether the high-profile co-working giant can manage to avoid this fate remains to be seen.
The bankruptcy proceedings do not include WeWork's locations outside the US and Canada, but may still determine what happens to its operations in Australia, according to two industry sources with an eye on the situation.
WeWork Australia's financial report for 2022 — filed almost a year before its parent's US bankruptcy filing — said that directors "have been assured of continued support from WeWork Companies LLC, which is the operating company of WeWork Inc, in writing, in order to meet its working capital obligations for a period of no less than 12 months from the date of the report".
