WeWork Didn’t Work

This is a very unusual time for investors like me who explore the investment opportunities offered by companies facing distress. I have been practicing this investment strategy for more than 25 years and have never seen so much confusion. There seem to be more and more companies in trouble than ever, and the number just keeps growing on an almost daily basis.

The most recent high-profile company in distress is WeWork, a company we wrote about in this same space four years ago and which finally filed for Chapter 11 protection on November 6. In a public statement, the company also announced its intent to file “recognition proceedings” in Canada under Part IV of the Companies’ Creditors Arrangement Act. In WeWork’s bankruptcy filing, the company, which was once valued at over $47 billion, listed about $18.7 billion in liabilities and $15.1 billion in assets.