Ya think?
"Bob, we've been lending against the Emperor's personal wardrobe and it turns out there's actually nothing in the closet"
"Oh"
From ZeroHedge:
And the hits keep coming for the 'trillionaire-to-be'
CEO of WeWork as Bloomberg reports that the lenders are looking to
revise terms on Adam Neumann's massive personal credit line amid
collateral concerns as the real estate company's valuation plummets.
Bloomberg details that Neumann arranged a credit line of as much as $500 million from JPMorgan Chase & Co., UBS Group AG and Credit Suisse Group AG secured by some of his shares in WeWork, according to the company’s regulatory filings.
As of July 31, he had drawn $380 million of the principal amount available, the filings show.
The last few weeks of farce as WeWork's prospective valuation has
collapsed along with the chances of it IPOing anytime soon, has raised
concerns that the collateral value of the shares pledged to cover
Neumann's massive personal line of credit may not cover the additional
risks that are now evident to the once greedy consortium who were just weeks ago willing to fall over each other to lend him cash.
Additionally the cost of debt on the company itself has soared to almost 700bps over Treasuries as the IPO has fallen apart...MORE
Sure, Climateer Investing took "
WeWork: 'Our valuation and size today are much more based on our energy and spirituality than it is on a multiple of revenue.'" at face value:
Roger that, energy and spirituality. Over....
But we didn't lend a half-billion against it for Chrissakes
