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PREIT Files for Prepackaged Chapter 11 Bankruptcy
Philadelphia-based shopping center PREIT said Monday it had filed a voluntary Chapter 11 petition in U.S. Bankruptcy Court for the District of Delaware. The company said its prepackaged reorganization plan was supported by 100% of its first- and second-lien lenders.
PREIT said the reorganization was intended to strengthen its balance sheet, reduce its total indebtedness by approximately $880 million and extend its maturity runway. The company has received commitments for new money debtor-in-possession and exit revolver financing totaling approximately $135 million from investors led by Redwood Capital Management, LLC and Nut Tree Capital Management, LP.
“Following the pandemic disruption, PREIT has worked tirelessly to enhance the portfolio, dramatically improve occupancy and diversify its tenancy,” said chairman and CEO Joseph F. Coradino. “However, unusual economic conditions have limited the company’s options with respect to its debt obligations as meaningful achievements on the operating front were met with inflation and rising interest rates.”
The company expects to exit bankruptcy by early February 2024.
Pictured: PREIT’s Moorestown Mall in Moorestown, NJ.
- ◦Financing
