Citing Pandemic Woes, Mall Owner Files Chapter 11
The COVID-19 pandemic is subsiding, but businesses are still feeling its negative effects. One of those is the Washington Prime Group Inc., a Columbus, Ohio-based mall owner, which filed for Chapter 11 bankruptcy June. 13. The company said the pandemic created significant challenges, making a Chapter 11 filing necessary to reduce its outstanding indebtedness.
Washington Prime Group said it will utilize Chapter 11 to implement a comprehensive and consensual financial restructuring of the company’s corporate-level debt that will allow it to substantially deleverage its balance sheet and strengthen its business and operations going forward. The company said it has secured $100 million in new money debtor-in-possession financing from the consenting creditors to support day-to-day operations during the Chapter 11 process and ensure that all business operations continue in the ordinary course without interruption. Washington Prime Group said its guests, retailers and business partners can expect business as usual at all of the company’s retail town centers throughout the proceedings.
“The company’s financial restructuring will enable Washington Prime Group to right-size its balance sheet and position the company for success going forward,” said Lou Conforti, the company’s CEO and director. “During the financial restructuring, we will continue to work toward maximizing the value of our assets and our operating infrastructure. The company expects operations to continue in the ordinary course for the benefit of our guests, tenants, vendors, stakeholders and colleagues.”