WeWork files for Chapter 11 bankruptcy protection (NYSE:WE)

WeWork (NYSE:WE) filed for Chapter 11 bankruptcy protection in a New Jersey federal court Monday.

The filing came after trading in the stock was halted Monday afternoon for news pending.

WeWork (WE) said it had entered into a restructuring support agreement with ~92% of its secured note holders.

In addition, the company will “further rationalize its commercial office lease portfolio” as it undergoes a restructuring, which only impacts its operations in the U.S. and Canada.

WeWork (WE) has a lease rejection plan it appears ready to implement. “WeWork is requesting the ability to reject the leases of certain locations, which are largely non-operational and all affected members have received advanced notice.”

“Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet,” CEO David Tolley said.

WeWork (WE) locations will continue to operate during the restructuring.