The operator of several Indiana malls has filed for Chapter 11 bankruptcy protection. Ohio-based Washington Prime Group Inc. (NYSE: WPG) owns a dozen shopping centers throughout Indiana, including Muncie Mall, Clay Terrace in Carmel, Markland Mall in Kokomo, and University Center in Mishawaka.
The company says it has entered into a restructuring support agreement with its creditors and will use the bankruptcy filing to “implement a comprehensive and consensual financial restructuring” of its corporate-level debt.
The RSA is being led by SVPGlobal, which the company says holds approximately 73% of its corporate debt. Washington Prime says it has also secured $100 million in debtor-in-possession financing to support its day-to-day operations during the Chapter 11 process.
“The Company’s financial restructuring will enable WPG to right size its balance sheet and position the Company for success going forward,” Lou Conforti, chief executive officer of Washington Prime, said in a news release. “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.”
Washington Prime says the pandemic created “significant challenges” that made the Chapter 11 filing necessary. Reuters, which first reported the bankruptcy plans, says the company rental income dropped $127 million last year compared to 2019 as it was forced to close some of its properties because of the pandemic.