February 1, 2021
Newmark Team claimed Monday it had actually consented to give debtor-in-possession (DIP) financing to Knotel, Inc. as well as acquire Knotel’s organization via its Phase 11 sales process. The Midtown South-based flexible office service provider declared volunteer personal bankruptcy security Monday.
“We look ahead to sustaining Knotel with this tough period,” said Newmark Chief Executive Officer Barry Gosin. “We are giving resources to Knotel so it can right-size its organization for the path forward.”
Knotel founder as well as CEO Amol Sarva said, “The pandemic produced a distinctively challenging operating environment, with substantial effect on leasing speed and also the price of renewals in crucial markets, specifically New york city and San Francisco.”
To facilitate this purchase, an affiliate of Newmark has actually consented to offer Knotel with about $20 million in cash as DIP financing to sustain the flexible office company via the personal bankruptcy process. Furthermore, Newmark owns all of the outstanding very first- and second-lien protected financial obligation of Knotel.
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