I’m ‘personally responsible’ for $750m SoftBank loan: Better.com’s Vishal Garg
Better.com CEO Vishal Garg, who drew attention for laying off nearly 900 employees during a Zoom call in 2021, admitted to employees that he had “personally guaranteed” $750 million over the injection of $1.5 billion into the company by SoftBank.
It was Garg, not the company, that took responsibility for compensating Japanese investment giant SoftBank for any losses, TechCrunch reports.
On November 30, 2021, Better.com, which is a digital mortgage lender, announced that “Aurora Acquisition Corp and SoftBank have decided to amend the terms of their financing agreement to provide Better with half of the $1.5 billion dollars they committed immediately instead of waiting until the deal is done.”
A filing from Aurora said “Top Founder and CEO, as an individual, has agreed to enter into a side letter with SoftBank that he may be liable for realized losses or receive payments under certain circumstances from SoftBank in framework of the post-closing of the convertible notes”.
In response, Garg, in an email to employees, admitted personal responsibility for the injection of $750 million, the report said Friday evening.
“I’m fully committed to everything I own and will ever own. In five years, when this $750 million loan from SoftBank comes due around my 50th birthday, that means I have nothing. Well, at less, we’ll have given it a real hit…it’s true. I personally guaranteed three-quarters of a billion dollars and I’m personally responsible for it,” he told employees.
The report, citing sources, also says Better.com has in recent weeks offered “its workers in India the option to leave under a voluntary separation agreement.” In total, nearly 920 workers had their resignations accepted.
After laying off nearly 4,000 employees in the United States and India, digital mortgage lender Better.com offered employees severance pay or voluntary separation and health insurance coverage.
According to the company, uncertain mortgage market conditions have created an extremely difficult operating environment for many companies in the sector.
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