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What A Bankruptcy Might Mean For WeWork’s Tenants

According to a story posted in the Wall Street Journal on August 24, several owners of WeWork’s secured debt totaling $1.2 billion are holding what were called “preliminary talks about the company’s restructuring options and indicated that they would support a plan for WeWork to file for chapter 11 bankruptcy.” However, the creditors who include BlackRock, King Street Capital and Brigade Capital, have not yet provided specific proposals concerning a bankruptcy or debt restructuring to WeWork, as per sources that were not identified.

What does this news mean for WeWork tenants, known as members? This is a long run prospect. Nobody knows exactly what will happen, and we are just at the start of a process that will have many twists and turns. However, let’s take a look at what might happen if a bankruptcy plan is negotiated with WeWork’s secured creditors by working through some of the alternatives if WeWork tries to reorganize as an ongoing company. To do so I consulted Eric Haber, general counsel for my firm Wharton Property Advisors who is also a bankruptcy attorney.

A Potential Bankruptcy Scenario

Under a potential bankruptcy reorganization plan,

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August 26, 2023 by ATTORNEY

FTX has recovered $5B in liquid assets, bankruptcy lawyer says

FTX investor Mark Miller discusses the fallout from FTX after losing $25,000 in the collapse.

Bankrupt cryptocurrency exchange FTX has recovered upwards of $5 billion in liquid assets, an attorney for the failed platform told a judge Wednesday.

FTX logo

The FTX Arena name is still visible where the Miami Heat basketball team plays in Miami on Nov. 12, 2022. Lawyers for FTX disclosed Wednesday that more than $5 billion in liquid assets have been recovered so far. (AP Photo/Marta Lavandier / AP Newsroom)

That figure includes cash, liquid digital assets and investments securities, the lawyer said.

FTX BUSINESS SALES DRAW OVER 100 EXPRESSIONS OF INTEREST

The revelation comes as FTX’s new leadership, led by current chief executive John J. Ray III, try to recover what they can of customers’ and investors’ funds following the firm’s collapse under previous CEO and founder Sam Bankman-Fried.

FTX CEO John Ray III testifies before the House Financial Services Committee

John Ray, CEO of FTX Cryptocurrency Derivatives Exchange, speaks during a House Financial Services Committee hearing investigating the collapse of FTX in Washington, D.C., on Dec. 13, 2022. (Al Drago/Bloomberg via Getty Images / Getty Images)

Prior to its downfall, FTX was the world’s second-largest crypto exchange and was once valued at an estimated $32 billion.

DOJ

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January 22, 2023 by ATTORNEY

Celsius Executives Cashed Out Shortly Before Bankruptcy

Two executives of beleaguered cryptocurrency lender Celsius appear to have withdrawn millions of their own investments before the company suspended withdrawals and filed for bankruptcy, new court filings show.

According to a statement of financial affairs filed in New York bankruptcy court late Wednesday, former CEO Alex Mashinsky and former chief strategy officer Daniel Leon made multiple withdrawals from their cryptocurrency accounts in May, days before the company halted all such transactions.

Mashinsky and related parties withdrew approximately $10 million worth of bitcoin, ether, USD coin and Celsius’ CEL token, according to the documents. Leon may have withdrawn between $2 and $7 million.

Forbes previously reported that CTO Nuke Goldstein also made withdrawals.

His lawyers, however, disputed this interpretation of the transactions listed in the filings. “The reality is that Mr. Goldstein did not withdraw even one dollar in the four weeks prior to the pause—to the contrary, he deposited over $90,000 in CEL tokens in late May, just three weeks before the pause,” wrote Avi Weitzman and Leo Tsao of the Paul

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October 7, 2022 by ATTORNEY

In all Trump’s legal wars and woes, one lawyer’s influence still holds sway : NPR

Attorney Roy Cohn, left, confers with red-hunting Sen. Joseph McCarthy, R-Wisc., during Senate hearings in 1954.

Keystone/Hulton Archives/Getty Images


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Attorney Roy Cohn, left, confers with red-hunting Sen. Joseph McCarthy, R-Wisc., during Senate hearings in 1954.

Keystone/Hulton Archives/Getty Images

In March of 2017, as clashes with the FBI director and attorney general were erupting just weeks into his presidency, Donald Trump was asking out loud: “Where’s my Roy Cohn?”

In December of 2020, with just weeks left in his term, Trump still had not had his question answered.

He was surrounded by lawyers. But none could play the role — or take the place — of the controversial counselor who decades earlier had changed his life.

President Trump Called For Roy Cohn, But Roy Cohn Was Gone

Cohn was already a legend when Trump met him in 1973. Cohn had been in the news for decades, prosecuting nuclear espionage or searching for communists or defending celebrity clients. Among those he represented were Cardinal Francis Spellman, New York Yankees owner George Steinbrenner and the New York crime bosses Carmine Galante and John Gotti.

Trump met him in the high-fashion Manhattan bar called Le Club and was soon relying on him for advice in dealing with lawsuits

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July 24, 2022 by LAW

Biden signs gun safety bill into law : NPR

President Biden signs into law the Bipartisan Safer Communities Act gun safety bill, in the Roosevelt Room of the White House on Saturday as first lady Jill Biden looks on.

Pablo Martinez Monsivais/AP


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President Biden signs into law the Bipartisan Safer Communities Act gun safety bill, in the Roosevelt Room of the White House on Saturday as first lady Jill Biden looks on.

Pablo Martinez Monsivais/AP

President Biden on Saturday signed into law the first major gun safety legislation passed by Congress in nearly 30 years.

The signing comes just over a month after the mass shooting at a Texas elementary school killed 19 children and two adults. That attack came 10 days after a racist mass shooting at a Buffalo, N.Y., supermarket killed 10 Black people.

“While this bill doesn’t do everything I want, it does include actions I’ve long called for that are going to save lives,” Biden said just before signing the measure.

“Today, we say more than enough. We say more than enough,” he added. “At a time when it seems impossible to get anything done in Washington, we are doing something consequential.”

The legislation, which passed the House

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July 4, 2022 by LAW
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