NEW YORK, Reuters WeWork has resolved landlords39; objections to its bankruptcy financing agreement, saying on Monday that it had agreed to reserve a portion of any future loans in an account that will be used for rent payments.

U.S. Bankruptcy Judge John Sherwood, who is overseeing the SoftBank backed company39;s Chapter 11 proceedings, approved the compromise during a court hearing in Newark, New Jersey. The deal allows SoftBank to redirect up to 682.5 million into new credit facilities used to backstop the shared office space provider39;s rent obligations.

SoftBank had already posted the funds as collateral for WeWork39;s rent costs, but the redirected funds will give SoftBank more flexibility to extend and replace expiring credit agreements, avoiding a scenario in which landlords attempt to collect on the posted collateral.

WeWork is not borrowing any new money as part of the approved financing, the company39;s attorney Ciara Foster said in court. But if it does bring in new money, through a future loan or asset sale, some of the future funds would be reserved to pay landlords, Foster said.

Sherwood thanked WeWork and its landlords for reaching an agreement that was good for the case, while acknowledging that WeWork39;s landlords still face significant financial risk.

The landlords are a huge player in this, Sherwood said. Some will do well and some might not.

Some of WeWork39;s landlords had objected last week, saying that the new financing agreements should…