WeWork warned there’s “substantial doubt” about its ability to continue operating. The company cited sustained losses and canceled memberships to its office spaces. From a report: The co-working business will focus over the next 12 months on reducing rental costs, negotiating more favorable leases, increasing revenue and raising capital, WeWork said in a statement Tuesday. The warning comes mere months after WeWork struck a deal with some of its biggest creditors and SoftBank to cut its debt load by around $1.5 billion and extend other maturities. Its bonds trade at deeply distressed levels. The company’s 7.875% unsecured notes due 2025 last changed hands for 33.5 cents on the dollar, according to data from Trace. The market cap of WeWork, once valued at $47 billion, fell below $300 million on Wednesday.
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