Mall owner Washington Prime Group prepares for bankruptcy

Set back by failure to convert unsecured bonds to preferred equity

National /
Mar.March 05, 2021 09:15 AM
Washington Prime Group CEO Louis Conforti (Twitter, iStock)

Washington Prime Group CEO Louis Conforti (Twitter, iStock)

A major mall owner is preparing for bankruptcy after it failed to make an interest payment on its debt.

Washington Prime Group, a real estate investment trust which owns more than 100 malls, has been negotiating with its lender to reduce its debt — but the talks are not going well, Bloomberg News reported. The mall owner has said Covid-19 could impair its ability to repay debt going forward or threaten its ability to stay afloat.

In November, Lou Conforti, the mall REIT’s chief executive officer, had said filing for bankruptcy was off the table.

But a month later, the mall had a setback. It sought to convert about $260 million in unsecured bonds to $175 million of preferred equity, but was unable to after it failed to reach an agreement with debt holders.

Washington Prime reported that its rent collections fell to 52 percent in the second quarter of 2020, although by the third quarter, collections had risen to 87 percent.

Two of the Ohio-based REIT’s competitors, CBL & Associates Properties and Pennsylvania Real Estate Investment Trust, filed for bankruptcy last year.

Malls have struggled during the pandemic as shoppers have stayed either because they felt safer shopping online or because indoor shopping was suspended to stop the spread of the coronavirus.

[Bloomberg News] — Georgia Kromrei


Related Articles

arrow_forward_ios
Strulovitch lender Marvin Azrak of Maguire Capital with three of the landlord's buildings
Chaskiel Strulovitch saves 18 of his 31 buildings with costly loan
Chaskiel Strulovitch saves 18 of his 31 buildings with costly loan
REITs notched banner year in 2021, but 2022 could be rocky
REITs notched banner year in 2021, but 2022 could be rocky
REITs notched banner year in 2021, but 2022 could be rocky
Blackstone chairman Stephen Schwarzman and Bluerock CEO Ramin Kamfar (Getty, Bluerock)
Blackstone buying multifamily REIT Bluerock for $3.6B
Blackstone buying multifamily REIT Bluerock for $3.6B
Troubled Brooklyn landlord All Year files for Chapter 11
Troubled Brooklyn landlord All Year files for Chapter 11
Troubled Brooklyn landlord All Year files for Chapter 11
Deconstruct Podcast
Now streaming: Have the holidays brought shoppers back to stores?
Now streaming: Have the holidays brought shoppers back to stores?
“Are we in a bubble?” Home sales and price growth to slow in 2022, experts say
“Are we in a bubble?” Home sales and price growth to slow in 2022, experts say
“Are we in a bubble?” Home sales and price growth to slow in 2022, experts say
Bronx landlord could lose property after filing for wrong type of bankruptcy
Bronx landlord could lose property after filing for wrong type of bankruptcy
Bronx landlord could lose property after filing for wrong type of bankruptcy
What 3 big mall bankruptcies say about the state of retail
What 3 big mall bankruptcies say about the state of retail
What 3 big mall bankruptcies say about the state of retail
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...