WeWork’s Chapter 11 bankruptcy and leases in Brazil
Abstract
Cross-border effects of bankruptcy procedures in the U.S. gained a new chapter in 2023, when WeWork Group filed for Chapter 11. WeWork has since claimed that this reorganization would not affect the company’s operations outside the U.S. However, as revealed during the Chapter 11 proceedings, WeWork’s leases in Brazil have indeed been affected, but in a less obvious manner. In this article we explore how the inclusion of the guarantor of WeWork’s Brazilian leases - a U.S. based entity - under the Chapter 11 bankruptcy left leases in Brazil unsecured. We further analyze the legal implications of this approach under Brazilian law and assess what remedies are available to Brazilian landlords under these circumstances.
