Washington Primary Group Inc. (NYSE: WPG), a serious estate investment decision trust focused on enclosed malls and strip heart retail attributes, has submitted for Chapter 11 individual bankruptcy.
What Transpired: The Columbus, Ohio-primarily based corporation declared its submitting in the U.S. Bankruptcy Court for the Southern District of Texas on Sunday.
In a press statement, the enterprise reported it agreed to enter Chapter 11 “after executing a restructuring guidance settlement with collectors, led by SVPGlobal, that maintain roughly 73% of the principal sum fantastic of the Company’s secured corporate financial debt and 67% of the principal amount excellent of the company’s unsecured notes.”
Washington Prime Team mentioned it “secured $100 million in new income debtor-in-possession financing from the consenting lenders to support working day-to-working day operations during the Chapter 11 procedure,” incorporating that its business enterprise operations will not be disrupted.
Why It Transpired: In announcing its personal bankruptcy filing, the organization blamed the tumult designed by the COVID-19 pandemic for creating “significant difficulties.” Enclosed purchasing malls had been particularly challenging hit all through the pandemic, with lots of homes shut for months and retail tenants both going out of business or getting difficulty producing rent payments.
Washington Prime Team has belongings approximated at $4 billion and a debt of just about $3.5 billion. It deferred on a $23.2 million bond curiosity payment in February and entered into forbearance agreements with various creditors in March. In its Q1 earnings report, the enterprise acknowledged a net loss of $55.4 million, in contrast to net profits of $3.4 million 1 12 months before.
CEO Lou Conforti mentioned the personal bankruptcy submitting will empower the business to “right sizing its harmony sheet and placement the company for achievement heading forward.”
At past examine, the company’s stock was buying and selling down 43% at $2.84, significantly from its 52-week large of $16.55 and closer to its 52-7 days minimal of $1.69.
(Illustration by Markus Winkler / Pixabay.)
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