NEW YORK, Jan. 31, 2021 /PRNewswire/ -- Newmark
Group, Inc. (Nasdaq: NMRK) ("Newmark") today agreed to
provide debtor-in-possession ("DIP") financing to Knotel, Inc.
("Knotel") 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."
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.
About Newmark
Newmark Group,
Inc. (Nasdaq: NMRK), together with its subsidiaries
("Newmark"), is a world leader in commercial real estate services,
with a comprehensive suite of investor/owner and occupier services
and products. Our integrated platform seamlessly powers every phase
of owning or occupying a property. Our services are tailored to
every type of client, from owners to occupiers, investors to
founders, growing startups to leading companies. Harnessing the
power of data, technology, and industry expertise, we bring
ingenuity to every exchange, and imagination to every space.
Together with London-based partner
Knight Frank and independently owned offices, our 18,800
professionals operate from approximately 500 offices around the
world, delivering a global perspective and a nimble approach. In
2019, Newmark generated revenues in excess of $2.2 billion. To learn more, visit
nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements About
Newmark
Statements in this document regarding Newmark that
are not historical facts are "forward-looking statements" that
involve risks and uncertainties, which could cause actual results
to differ from those contained in the forward-looking statements.
These include statements about the effects of the COVID-19 pandemic
on the Company's business, results, financial position, liquidity
and outlook, which may constitute forward-looking statements and
are subject to the risk that the actual impact may differ, possibly
materially, from what is currently expected. Except as required by
law, Newmark undertakes no obligation to update any forward-looking
statements. For a discussion of additional risks and uncertainties,
which could cause actual results to differ from those contained in
the forward-looking statements, see Newmark's Securities and
Exchange Commission filings, including, but not limited to, the
risk factors and Special Note on Forward-Looking Information set
forth in these filings and any updates to such risk factors and
Special Note on Forward-Looking Information contained in subsequent
reports on Form 10-K, Form 10-Q or Form 8-K.
Media
Contact:
Deb
Bergman
t
303.717.8882
dbergman@ngkf.com
Marynia
Kruk
Antenna
Group
t.
347.452.7753
marynia.kruk@antennagroup.com
Investor
Contact:
Jason Harbes,
CFA
t
212.829.7125
jharbes@ngkf.com
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SOURCE Newmark Group, Inc.