vishal garg: I ​​am “personally liable” for a $ 750 million SoftBank loan: Better.com CEO Vishal Garg

San Francisco: Better.com CEO Vishal Gargfor which he conquered the limelight
firing nearly 900 employees during a Zoom call in 2021acknowledged employees that they “personally guaranteed” $ 750 million of the $ 1.5 billion of cash infused into the company by Soft bank.

It was Garg, not the company, who 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 agreed to change the terms of their funding agreement to provide Better with half of the $ 1.5 billion they pledged immediately instead of waiting until the deal is closed. ”

An Aurora filing stated that “Better Founder and CEO in a personal capacity have agreed to enter into a collateral letter with SoftBank, under which it may be liable for realized losses or receive payments in certain circumstances from SoftBank in connection with the post-convertible bond of closure”.

In response, Garg in an email to employees acknowledged personal responsibility for the $ 750 million cash infusion, according to the report late Friday.

“I am fully committed to everything I own and will ever own. In five years, when that $ 750 million SoftBank loan expires around my 50th birthday, it means I have nothing. Well, at least we’ll have given it a real chance. . this is true. I have personally guaranteed three-quarters of a billion dollars and am personally responsible for it, “he told employees.

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The report, citing sources, also said that Better.com in recent weeks has offered “its workers in India the option to leave under a voluntary separation agreement.” In total, nearly 920 workers had accepted their resignations.

After firing nearly 4,000 employees in the United States and India, digital mortgage lender Better.com has offered employees severance pay or voluntary separation and health insurance coverage.

According to the company, the uncertain conditions in the mortgage market have created an extremely difficult operating environment for many companies in the sector.

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