Global commercial real estate advisory firm Newmark Group said Monday that it agreed to provide debtor-in-possession (DIP) financing to Knotel, Inc., a flexible workspace provider, and acquire Knotel’s business through its Chapter 11 sales process.
“We look forward to supporting Knotel through this difficult period,” said Newmark Chief Executive Officer Barry Gosin. “We are providing capital to Knotel so it can right-size its business for the path forward.”
“Newmark’s commitment offers a path forward amidst this challenging climate,” said Knotel Co-Founder and Chief Executive Officer Amol Sarva.
“We are optimistic that, through a successful restructuring, we can refocus on our mission of providing state-of-the-art, tailored flex space in key U.S. and international markets. We have engaged Hilco Real Estate, a real estate restructuring specialist, to assist Knotel,” he added.
”To facilitate this transaction under Section 363 of the United States Bankruptcy Code, an affiliate of Newmark has agreed to provide Knotel with approximately $20 million in cash as DIP financing to support Knotel through the bankruptcy process. Additionally, Newmark owns all of the outstanding first and second-lien secured debt of Knotel. Newmark’s agreement to acquire Knotel assets is subject to approval from the United States Bankruptcy Court,” said the company in a statement.
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