Problems surrounding the We Company’s IPO have raised concerns among the banks that provided WeWork co-founder and CEO Adam Neumann with a $500m credit line. Among concerns that investors have voiced are Neumann’s controversial style and his control of the company. Bankers are worried that shares Neumann pledged for the loan have decreased in value and may not adequately cover the potential risk, according to Bloomberg, citing people briefed on the discussions. Regulatory filings show that as of 31 July, Neumann had drawn down $380m from a $500m credit line extended by JPMorgan, UBS and Credit Suisse that was secured by some of his shares in WeWork. It is not clear what changes the banks may seek, or what right they may have, although the filing shows that the lenders have the ability to make a margin call if the stock declines below a certain level. The bank has also been looking at its own balance sheet, which includes loans made through an affiliate called WeWork’s subsidiary company WeWork,
Problems surrounding the We Company’s IPO have raised concerns among the banks that provided WeWork co-founder and CEO Adam Neumann with a $500m credit line. Bankers are worried that shares Neumann pledged for the loan have decreased in value and may not adequately cover the potential risk, according to Bloomberg, citing people briefed on the discussions. Regulatory filings show that as of 31 July, Neumann had drawn down $380m from a $500m credit line extended by JPMorgan, UBS and Credit Suisse that was secured by some of his shares in WeWork. It is not clear what changes the banks may seek, or what right they may have, although the filing shows that the lenders have the ability to make a margin call if the stock declines below a certain level. The bank has also been looking at its own balance sheet, which includes loans made through an affiliate called WeWork’s subsidiary company WeWork,