Mall Owner Washington Prime Files For Chapter 11 Bankruptcy

(Bloomberg) — Washington Prime Group Inc., a real estate financial investment rely on that operates enclosed malls and strip facilities across the U.S., filed for personal bankruptcy right after the Covid-19 pandemic curtailed in-human being buying.

The Chapter 11 filing in Houston will make it possible for Washington Key to proceed operating while it seeks to employ a restructuring arrangement that it attained with certain creditors, according to a board resolution filed with the individual bankruptcy petition. The business, which believed its belongings at about $4 billion and personal debt of virtually $3.5 billion, secured an up to $100 million debtor-in-possession bank loan that would aid fund functions for the duration of court proceedings.

The Columbus, Ohio-primarily based company that operates all-around 100 malls, observed its bonds tumble into distressed territory in 2020 as hire collections dried up and tenants filed for bankruptcy or went out of business. It commenced negotiating with its creditors previous yr and skipped a $23 million bond interest payment in February. Lenders experienced been extending a forbearance settlement amid the talks.

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

The situation is Washington Key Team Inc., 21-31948, U.S. Bankruptcy Court for the Southern District of Texas (Houston).

(Provides restructuring pact and other particulars from submitting in next paragraph.)

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