WeWork’s once robust cash reserves have dwindled, raising chances of default
&#x27;WeWork, saddled with expensive long-term leases and more than $3 billion of debt, recorded a negative cash flow of around $4.3 billion between July 2020 and September of this year. It has been able to cover its losses partly with loans and equity investments from its biggest backer, SoftBank Group Corp. , which to date has sank more than $10 billion into the business.<p>WeWork has burned through nearly all of it. The company has $500 million in undrawn debt commitments from SoftBank and has said it expects to end 2022 with $300 million in cash, less than one-third of what it had at the end of 2021. Its debt contracts allow it to borrow another $500 million&#x27;.<p>Wikipedia: <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Adam_Neumann" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Adam_Neumann</a><p>As WeWork CEO, Neumann on multiple occasions purchased buildings and then leased the space back to WeWork.[56] Observers noted this as a potential conflict of interest and one that would not be allowed if WeWork were a public company.[57] During his tenure as CEO of WeWork, Neumann also purchased US$90 million worth of residences, including a 60-acre (24 ha) estate in Westchester County, New York, a 6,000-square-foot (560 m2) condominium near Gramercy Park, two homes in The Hamptons, and a US$21 million mansion in Corte Madera, California.[19]<p>Neumann has begun purchasing apartment buildings and, as of early 2022, owned some 4,000 apartments worth about US$1 billion, primarily located in the American South.[58]&#x27;<p>In &#x27;Generation Hustle&#x27; someone is left holding the bag...