Adam Neumann might be out of the day-to-day flow of WeWork, but he seemingly remains top of mind to a few of the company’s lenders.
According to a new Business Insider piece, Neumann is working with JPMorgan, UBS and Credit Suisse to think about brand-new terms for a $500 million loan that he took out before WeWork submitted to go public, and from which Neumann has currently drawn down $380 million. Because he can no longer pay the loan with proceeds from offering WeWork shares openly (it yanked its S-1 filing previously this week), he might have to set up some of his residential or commercial properties or other properties as security for the loan, according to among BI’s sources.
” No terms have been set,” a spokesperson for Neumann tells the outlet.
Per earlier reports, Neumann has plenty to unload if it concerns it, having obtained various property and business properties for many years.
Among his documented financial investments is a $105 million Greenwich Town townhouse; a farm in Westchester, New York City; a house in the Hamptons, where he reportedly weathered the storm with his household ahead of resigning as CEO last week; and a $21 million, 13,000- square-foot home in the Bay Area with a guitar-shaped room
According to an earlier WSJ report, Neumann also purchased several business homes through investor groups that he rented back, in many cases, to WeWork.
WeWork and Neumann have actually both taken pleasure in a close relationship with JPMorgan over the last few years. As just recently reported in The New York Times, JPMorgan “provided Mr. Neumann money personally (with his inflated shares as collateral), offered equity and financial obligation for the company, acted as a corporate adviser for the I.P.O. and secured nearly $6 billion in funding as part of the now scotched offering.”