Washington Prime Seeks Bankruptcy Protection Following COVID Closures
Joining other shopping center operators that declared bankruptcy following last year’s shutdown amid the pandemic, Washington Prime Group (WPG) said Sunday night that it had filed for Chapter 11 protection at U.S. Bankruptcy Court in Houston. WPG has executed a restructuring support agreement (RSA) with creditors, led by SVPGlobal, holding 73% of its outstanding secured corporate debt.
Columbus, OH-based WPG secured $100 million in debtor-in-possession financing, and said that it will be business as usual at its approximately 100 shopping centers throughout the proceedings.
In a statement, WPG cited the “significant challenges” posed by the pandemic. CEO Lou Conforti said the financial restructuring would enable WPG “to right-size its balance sheet and position the company for success going forward.”
The RSA provides for deleveraging of WPG’s balance sheet by nearly $950 million via equitization of unsecured notes and a $190-million paydown of its revolving credit and term loan facilities.