#United States #Northbrook #Hilco Global #WeWork #TMA 2025

Hilco Global Receives 2025 Turnaround Management Association Award for WeWork Lease Restructuring

Hilco Global, a well-known player in the global financial services sector, has recently been celebrated for its stellar role in the restructuring of WeWork's leases. This acknowledgment came from the Turnaround Management Association (TMA), which awarded Hilco Global the prestigious 2025 Large Company Turnaround/Transaction of the Year Award. The accolade was presented during the TMA Annual Conference, which took place from October 13 to 17 in New Orleans, Louisiana.

Dan O'Brien, the Executive Director of Real Estate at Hilco Global, shared his sense of pride regarding the partnership with WeWork and its advisory team, particularly emphasizing the complexity and success associated with this real estate restructuring project. He stated, “This recognition from the TMA highlights our expertise in delivering measurable results for clients in high-stakes situations.”

The Journey of Restructuring WeWork

Initially, WeWork contracted the Hilco Global Real Estate practice to facilitate a global lease repositioning process involving its landlords. However, the situation quickly escalated when WeWork announced its intention to file for bankruptcy protection in the United States under Chapter 11, as well as under the Companies' Creditors Arrangement Act (CCAA) in Canada, while initiating a conciliation process in France. Declarations of formal restructuring across other nations were paused with the aim of collaboratively restructuring lease commitments with landlords.

In this challenging landscape, the Hilco Global team worked in close coordination with WeWork's management and the advisors for the debtor to develop a strategy aimed at minimizing real estate liabilities through effective lease repositioning and restructuring.

Achievements of the Restructuring Efforts

Hilco Global harnessed its extensive knowledge in lease restructuring, negotiation with landlords, and optimization of portfolios to revise terms for approximately 500 leases spanning across 24 countries. The collaboration with WeWork and their advisory team yielded nearly $10 billion in lease mitigation savings, alongside an impressive enhancement in annual profitability, approximating $800 million.

The TMA’s Turnaround and Transaction Awards are recognized within the industry for honoring the most successful turnaround strategies and transactions, backed by a stringent peer-review process. Hilco Global's commitment and involvement in WeWork's lease restructuring were instrumental in facilitating a prosperous outcome for the company and its involved stakeholders.

About Hilco Global

Hilco Global operates as a subsidiary of ORIX Corporation USA and presents a diverse range of financial services. Their extensive offerings include integrated professional services and capital solutions tailored to help clients maximize value within the retail, commercial and industrial, real estate, manufacturing, and intellectual property sectors. The company caters to a wide variety of companies facing health issues, stress, or distress, offering customized solutions aimed at resolving complex situations and enhancing the long-term value of enterprises.

Headquartered in Northbrook, Illinois, Hilco Global boasts a team of over 810 professionals working across four continents. For further insight into Hilco Global's engagement with WeWork, visit their official website at www.hilcoglobal.com.