July 24, 2021

Market and Financial News

Market and Financial News Aggregator

Mall Owner Washington Prime Files For Chapter 11 Bankruptcy

2 min read

(Bloomberg) — Washington Prime Group Inc., a real estate investment trust that operates enclosed malls and strip centers across the U.S., filed for bankruptcy after the Covid-19 pandemic curtailed in-person shopping.

The Chapter 11 filing in Houston will allow Washington Prime to continue operating while it seeks to implement a restructuring agreement that it reached with certain creditors, according to a board resolution filed with the bankruptcy petition. The company, which estimated its assets at about $4 billion and debt of almost $3.5 billion, secured an up to $100 million debtor-in-possession loan that would help fund operations during court proceedings.

The Columbus, Ohio-based firm that operates around 100 malls, saw its bonds tumble into distressed territory in 2020 as rent collections dried up and tenants filed for bankruptcy or went out of business. It began negotiating with its creditors last year and skipped a $23 million bond interest payment in February. Creditors had been extending a forbearance agreement amid the talks.

Washington Prime said it filed the Chapter 11 after executing a restructuring support agreement with creditors that hold about 73% of the principal outstanding of secured corporate debt and 67% of the unsecured notes. The firm aims to deleverage its balance sheet by nearly $950 million, according to a company statement.

Bloomberg News previously reported that Washington Prime was weighing a bankruptcy filing as talks faltered.

The case is Washington Prime Group Inc., 21-31948, U.S. Bankruptcy Court for the Southern District of Texas (Houston).

(Adds details on restructuring agreement in fourth paragraph.)

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.



2021-06-13 23:51:19

All news and articles are copyrighted to the respective authors and/or News Broadcasters. VIXC.Com is an independent Online News Aggregator


Read more from original source here…

Leave a Reply

Copyright © All rights reserved. | Newsphere by AF themes.