Re:The WeWork IPO
by JumpCrisscross on Tuesday August 20, 2019 @11:58AM
(#20748425)
> they might simply be trying to become big and entrenched enough that bailouts of some variety
The implied source of such bailouts are the landlords, who may prefer to cut lease terms versus see e.g. 40% of their portfolio blow out simultaneously. (My personal view is yes, landlords will renegotiate terms. But they'll also demand an arm and a leg, likely in the form of senior debt and aggressive warrant coverage.)
Re:The WeWork IPO
by OrangeMango on Tuesday August 20, 2019 @02:23PM
(#20750234)
> landlords, who may prefer to cut lease terms versus see e.g. 40% of their portfolio blow out simultaneously.
Landlords aren't going to renegotiate unless WeWork manages to hold back the corporate veil-piercing lawsuits. Given everything we know about their internal corporate governance, I'm not sure why any landlord would accept a haircut right away. There's probably a mile-long line of lawyers waiting for the chance to go after them; most would probably do it on contingency.
If you entrench yourself deeply enough and people are looking at eviction and foreclosure and cancelling construction projects they could fight for this. Call it capitalism by hostage negotiation.
This actually seems to be what some larger companies like GE are planning on, (and Foxconn has already executed successfully) but it's bizarre to see this plan launched at the IPO stage.