Newmark Group agreed to provide debtor-in-possession financing totaling $20 million to Knotel and acquired the company’s assets through its recent Chapter 11 sales process.
“We look forward to supporting Knotel through this difficult period,” Barry Gosin, CEO of Newmark, said. “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,” Amol Sarva, co-founder and CEO of Knotel, said. “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.”
To facilitate this transaction under Section 363 of the United States Bankruptcy Code, an affiliate of Newmark 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.
Newmark Group is a provider of commercial real estate services.
