In Oct., WeWork secured a $9.5 billion rescue package from SoftBank, a bailout package that would hand over at least 80% of the office-sharing startup to the Japanese bank. WeWork bonds rallied in hopes that the company was saved for near-death after a failed IPO.
Fast forward several months, sources told Reuters on Monday that SoftBank’s bailout for WeWork just got complicated, warning that there’s no bailout money.
Sources told Reuters that SoftBank’s discussions with Mizuho, MUFG, and SMFG have stalled because lenders have hit internal lending limits to the firm. This means Japan’s three largest banks won’t provide capital to SoftBank, so it can bailout WeWork.