☕️ WeBankrupt

WeWork files for Chapter 11 bankruptcy

November 08, 2023

Good morning.

WeWork has filed for Chapter 11 bankruptcy after making a deal with longtime investor Softbank Group and other creditors to cut more than US$3 billion in debt.

Most of its shares will be wiped out as it plans to restructure US$13 billion in leases, while its global operations are expected to operate as usual.

*Stock data as of the market close. Commodities and crypto data in USD.

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MARKET MOVERS

Market News: Origin Energy shares rallied 1.2% to $8.64 after bidders Brookfield and EIG hired Alliance Advisers to lobby shareholders to support the deal, which had been rejected by AustralianSuper.

Meanwhile, the bidders are also said to be planning a hostile takeover bid for Origin for a lower price than the $9.53 share price by Christmas.

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THE QUICK SYNC

  • A US consumer watchdog has proposed regulating the digital payments and smartphone wallet services, which could put Alphabet, Apple, Paypal and Block under bank-like supervision. (Reuters)

  • Private equity giant KKR expects a “noticeable uptick” in fundraising while competitor Carlyle has warned staff “every single expense is on the table”. (Financial Times)

  • Australian news outlets are weighing up the risks and benefits of sending correspondents back to China after more than three years absent. (Capital Brief)

  • Hollywood’s historical Egyptian Theatre has found an unlikely savior in Netflix, which reopened the theatre this week after a US$70 million, four-year restoration. (Financial Times)

TRADING FLOOR

M&A:

  • ISS supports $20bn takeover proposal for Origin Energy, vote on Nov 23. (AFR)

  • Integral Diagnostics' debt-to-earnings ratio deters suitors. (The Australian)

  • Geminder's Pact Group buyout bid faces hurdles, reaches 51.53% with 24 hours left. (AFR)

  • Advisory firm backs Brookfield and EIG's Origin Energy takeover as AustralianSuper opposes. (SMH)

  • Centennial and Parkstone eye Hinkler Central acquisition for $107m. (AFR)

  • Earlypay acquires Timelio, marking losses for investors in the invoice financing fintech. (Startup Daily)

  • Brookfield and EIG plan hostile Origin Energy takeover bid. (The Australian)

  • Vinci seeks Rothschild's help for EastLink bid in Melbourne. (AFR)

  • Southern Cross seeks details on ARN Media offer. (The Australian)

Capital Markets

  • WeWork files for bankruptcy as it struggles to recover from IPO failure. (SMH)

  • Chrysos completes a $75m placement for PhotonAssay tech. (Capital Brief)

VC:

  • MVP Ventures Program offers up to $50,000 for NSW startups. (Smart Company)

  • Western Technology Investment capitalizes on shifts in startup lending market. (Capital Brief)

Others:

  • Meta bans political advertisers from using generative AI ads. (Capital Brief)

  • Moelis promotes GoZero as a key player in the EV revolution. (AFR)

  • APA Group approves Kurri Kurri Lateral Pipeline. (Capital Brief)

  • Dexus extends the redemption waiting period for property fund investors. (AFR)

  • OpenAI enables customized AI bots and reduces developer model costs. (Capital Brief)

  • Air New Zealand faces 2 years of disruptions due to aircraft and engine maintenance. (SMH)

  • GQG sees $1.9bn outflows in October. (Capital Brief)

  • JPMorgan boosts real estate banking team with new hire, Patrick Dunn. (The Australian)

  • Citigroup considers significant job cuts as part of reorganization. (Capital Brief)

THE WATERCOOLER