2023-04-07 16:51:12 ET
WeWork Inc. ( NYSE: WE ) adopted a shareholder rights plan as it tries to preserve its tax assets.
WeWork ( WE ) adopted a stockholder rights plan designed to protect long-term stockholder value by preserving the availability of WeWork’s net operating loss carryforwards (“NOLs”), according to a statement.
The holder rights plan comes after the office-space sharing companyentered a pact with a group of bondholders, a third-party investor, and SoftBank's ( OTCPK:SFTBY ) Vision Fund to boost its liquidity and reduce its debt last month.
As of December 31, WeWork ( WE ) had approximately $6.9 billion of U.S. federal NOLs and $6.6 billion of state NOLs that could be available to offset its future federal taxable income and state taxable income.
WeWork ( WE ) said its ability to use the NOLs would be "substantially" limited if it experienced an “ownership change." The rights plan or "poison pill" goes into effect if a person or group acquires beneficial ownership of 4.9% or more of the company.
The Tax Asset Preservation Plan took effect on Friday and is scheduled to expire in a year.
On Monday WeWork ( WE ) announced that its subsidiaries - WeWork Companies and WW Co-Obligor - commenced separate offers to exchange any and all of the outstanding issuers' 7.875% senior notes due 2025 and 5.00% senior notes due 2025.
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WeWork adopts holder rights plan to preserve tax assets