Mall real estate investment trust Washington Prime Group Inc. WPG, -4.35% filed for Chapter 11 bankruptcy protection on Sunday, brought down by the impact of the coronavirus pandemic. The Columbus, Ohio-based company said it has a restructuring support agreement with creditors that own about 73% of its outstanding secured corporate debt and 67% of its unsecured notes. The company has secured $100 million in a debtor-in-possession loan to fund daily operations during the Chapter 11 process. The restructuring support agreement will allow the company to deleverage its balance sheet by almost $950 million. It also plans a $325 million equity rights offering backstopped by lead creditor SVPGlobal, proceeds of which will be used to pay down secured debt. “The company’s financial restructuring will enable WPG to right size its balance sheet and position the Company for success going forward,” Chief Executive Lou Conforti said in a statement. Shares were halted for the news but have fallen 26% in the year to date, while the S&P 500 SPX, +0.19% has gained 13%.
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