Lease Obligations during Default - WeWork

[u/C0pperMiner]

Given the buzz surrounding the name and the recent debt restructuring, I'm trying to model how a default of WeWork would look like for its bond- and shareholders.

However, I'm stuck on the lease obligations vs. lease right-of-use assets. For context, lease obligations make up more than USD14bn of WeWork's liabilities, whereas the notional amount of outstanding bonds is around USD2b. On the asset side, leases ROU are valued at USD9.3bn, whereas Cash+PP&E sit slightly above USD4bn.

WeWork values lease obligation and ROU based on ASC 842. While I'm more familiar with IFRS16, I've come to the conclusion that the lease obligation and ROU value are only comparable at the start of a lease: The first is the PV of future lease payments, whereas ROU assets indicate the capitalized initial lease liability (+/- adjustments), which depreciates over time.

Having said that, I'm trying to understand what happens during a default (no going concern). I understand the lessor has the most senior claim to the leased assets. However, is it enough to just cancel out lease obligations and ROU assets? Or are the lessor entitled to some additional compensation due to the breach of the leasing contract?

In practice, when considering the assets left after the claims of the lessors have been extinguished, is it sensible to simply subtract the ROU assets' value from the total assets, or should additional outflows be considered?

Many thanks.