(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.
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 restructuring pact and other details from filing in second paragraph.)
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