dip financing

WeWork’s Biggest Landlords Balk At SoftBank’s Proposed Bankruptcy Financing Plan

Some of WeWork’s most prominent landlords are objecting to the way the coworking company’s majority owner has laid out plans to fund its bankruptcy proceedings.

In a wave of objections filed Thursday afternoon, attorneys for office giants including Boston Properties, Brookfield Properties and Starwood Capital asked a judge to reject WeWork’s motion for debtor-in-possession financing. The attorneys argue that SoftBank Group, as the proposed DIP lender, is leaving landlords too exposed in the event that WeWork’s Chapter 11 restructuring falls apart.


Bisnow/Ethan Rothstein

The WeWork location in Carr Properties’ Midtown Center at 100 15th St. in Washington, D.C.

Landlords of more than 50 WeWork locations across the country filed the objections to the bankrupt firm’s proposal, which would allow SoftBank Group’s Vision Fund to use letters of credit it bankrolled for WeWork’s leases as funds during the Chapter 11 restructuring.

“While Objecting Landlords, along with … other landlord groups, have attempted to negotiate a consensual resolution of the issues presented by the Motions, to date, such efforts have not resulted in an agreement, necessitating this Objection,” attorneys at Kelley Drye & Warren, representing Brookfield and Starwood, among other landlords, wrote in a court filing.

Douglas Rosner, a bankruptcy attorney at

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Estes enters as serious financial backer in Yellow bankruptcy

Yellow Corp. has received an offer from rival less-than-truckload giant Estes Express Lines that would fund its short-term efforts to wind down its operations via Chapter 11 bankruptcy proceedings. An attorney for Nashville-based Yellow, which was No. 6 on the 2023 for-hire FleetOwner 500, said on Aug. 11 that the Estes Express “financing proposal [had] continued to gel” late last week.

Richmond, Virginia-based Estes Express (No. 11 on the for-hire FleetOwner 500) surfaced earlier last week as a possible source of so-called debtor-in-possession (DIP) funding for Yellow, which filed for protection from its creditors on Aug. 6 and is looking to sell off its equipment and real estate in the next two months. Yellow has an estimated $1.5 billion in debt, but its assets to sell are substantial: 12,700 tractors (about 1,000 of them leased) as well as 42,000 trailers (of which 7,200 are leased), 169 terminals, and six warehouses run by its Yellow Logistics subsidiary. And the entry of rival Estes Express as a financial backer has introduced complications and interest in the fate of Yellow’s holdings.

See also: Fleet failures playing role in fueling used-truck market surge

Yellow executives and their attorneys have said since filing Chapter 11

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