COLUMBUS — An Ohio-based mall owner with more than 100 properties across the country has filed for Chapter 11 bankruptcy.
Washington Prime Group announced Sunday, it and some of its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. The Company enters Chapter 11 after executing a restructuring support agreement with creditors, according to Business Wire.
The company, which owns several malls in Ohio, including the Polaris Fashion Place in Columbus, Dayton Mall in Dayton, and the Ashland Town Center in Ashland Ky, stated the reasoning for the filing was due to the COVID-19 pandemic “creating significant challenges.”
“The Company’s financial restructuring will enable WPG to right size its balance sheet and position the Company for success going forward,” Lou Conforti, CEO and Director of Washington Prime Group, said. “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.”
The company stated, making a Chapter 11 filing was necessary to reduce the Company’s outstanding indebtedness. Washington Prime Group said it remains committed to serving as a preeminent operator of retail town centers and will continue to serve its guests.
According to Business Wire, The Company has filed several customary first day motions with the Bankruptcy Court that will allow the Company to continue operations in the ordinary course. Certain subsidiaries, including the Company’s joint ventures and the majority of the Company’s special purpose entities holding properties that secure mortgage loans, will not be debtors in the Chapter 11 cases.
The Company also anticipates continuing to meet all debt service and other financial obligations, as required, under its property-level secured loans and joint venture partnerships.