Knotel Publicizes Path Ahead to Rightsize Enterprise

NEW YORK, Jan. 31, 2021 /PRNewswire/ — Knotel, Inc. (or the “Firm”) immediately introduced plans to speed up its transformation right into a extra capital environment friendly enterprise and reorganize its operations and capital construction below new possession.

As a part of its strategic path ahead, Knotel has reached an settlement to promote the enterprise to an affiliate of Newmark Group, Inc. (Nasdaq: NMRK) (“Newmark”), a number one full-service business actual property agency. The Firm has additionally made the choice to exit a number of places within the U.S. as a part of the method. 

To perform the sale of the enterprise and a reorganization of the Firm’s U.S. footprint in probably the most environment friendly method, Knotel and its U.S. subsidiaries have filed voluntary petitions for aid below Chapter 11 of the U.S. Chapter Code in the US Chapter Court docket for the District of Delaware (the “Court docket”). The submitting doesn’t embody Knotel’s worldwide operations.

Knotel has obtained a dedication for debtor-in-possession (“DIP”) financing from an affiliate of Newmark of roughly $20 million in money. Topic to Court docket approval, Knotel believes this DIP financing will present adequate liquidity to assist Knotel’s day-to-day operations throughout the course of, together with well timed cost of worker wages and continuation of advantages, in addition to working with prospects and distributors.

Amol Sarva, Knotel Co-founder and Chief Govt Officer, mentioned, “After an intensive assessment of strategic options, we now have decided {that a} course of to promote our enterprise and reshape our U.S. footprint is the perfect path ahead to maximise worth for our stakeholders. The pandemic created a uniquely difficult working surroundings, with vital impacts on leasing velocity and the speed of renewals in key markets, notably New York and San Francisco. We should deal with this now to place our enterprise for sustainable development and a profitable future.”

“Our restructuring will allow us to strengthen our stability sheet, deal with a rightsized portfolio of places, and keep relationships with our buyer base whereas persevering with to construct on Knotel’s differentiated service providing. We proceed to consider in Knotel’s potential within the rising flex market. We thank our gifted group members for his or her continued onerous work and dedication towards fulfilling our imaginative and prescient of tailoring versatile workspaces on a world scale so firms and their individuals are empowered to do their finest work,” Dr. Sarva added.

“We sit up for supporting Knotel by means of this transitional interval,” mentioned Newmark Chief Govt Officer Barry Gosin. “We’re offering capital to Knotel so it might rightsize its enterprise for the trail ahead.”

To make sure a easy transition into Chapter 11, the Firm filed with the Court docket a collection of customary “first day” motions, together with requests to proceed to pay wages and supply well being and insurance coverage advantages to workers within the regular course.

The Firm additionally filed a movement requesting approval of a stalking horse asset buy settlement with Newmark and to provoke a course of below Part 363 of the Chapter Code.

Further details about the Knotel Chapter 11 continuing, together with entry to Court docket paperwork, might be discovered at https://instances.omniagentsolutions.com/knotel. Stakeholders with questions can name (866) 771-0565 (U.S. and Canada) or (818) 581-2989 (worldwide) or e mail [email protected].

Milbank LLP and Fenwick & West LLP are serving as authorized counsel and Moelis & Firm LLC is serving as funding banker to Knotel.

About Knotel
Knotel operates a number one versatile workspace platform that matches, tailors, and manages area for patrons. Based in 2016 to provide companies the flexibleness and velocity to scale on their very own phrases, Knotel caters to established and rising firms, giving them the liberty to deal with their enterprise, tradition, and folks. All Knotel areas are tailor-made to the wants of every particular person firm by an in-house group of architects, inside designers, and office strategists. For extra info, please go to www.Knotel.com.

Media Contacts:
Mousa Ackall
Director of Advertising and marketing
[email protected]
(678) 662-7371

Jeremy Fielding / Sherri L. Toub / Ross Lovern
Kekst CNC
[email protected] / [email protected] / [email protected]
(212) 521-4800

SOURCE Knotel, Inc.

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