Goldman Sachs has offered a line of credit worth $1.75 billion to WeWork after its demise that led to 2,400 layoffs nationwide in October, Bloomberg News reported Monday, citing people familiar with the matter.
Coincidentally, disgraced WeWork founder Adam Neuman's exit package handed to him in October was worth $1.7 billion.
"This has nothing to do with [the] Neumann payout," a Goldman source told The New York Post. "This is a letter of credit facility for [WeWork] to be able to [rent new space from] landlords."
The office-space rental company posing as a tech startup was worth about $47 billion before its downfall when the company's financial information went public, highlighting Neuman's severe mismanagement of and deceptive optimism for the company.
WeWork chose a $9.5 billion rescue offer from investor SoftBank over a competing proposal from JPMorgan Chase in late October, which was expected to value WeWork at about $8 billion, the Wall Street Journal reported.
"JPMorgan will be 100 percent driving some of these narratives on the street," a source told the Post regarding the $1.75 billion bailout amount. "They are bitter they are no longer involved."
Softbank then turned to Goldman in its effort to pull together $5 billion in debt financing.
The New York-based startup has lost money every year since 2016, with the shortfall widening to $1.61 billion last year. In the first six months of 2019, expenses outpaced revenue by $689.7 million, according to a regulatory filing.
FOX Business' James Langford contributed to this report.