WeWork and its major financial backers, including SoftBank Group, have struck a new restructuring deal to get the ailing workspace provider out of bankruptcy, spurning a competing financing proposal from co-founder Adam Neumann.

WeWork has struck an agreement with senior lenders, who have agreed to provide the business with roughly $US450 million ($690 million) in Chapter 11 (bankruptcy) and exit financing in exchange for equity in the reorganised business. SoftBank and other owners of the company’s existing letters of credit could also swap their debt holdings for stock after exiting Chapter 11, WeWork lawyer Steven N. Serajeddini said during a bankruptcy court hearing in New Jersey this week.

Bloomberg