BOARD OF DIRECTORS – Senior bondholders and several creditors in Washington Prime Group Inc., owners / operators of Southern Park Mall, have given the troubled company more time to avoid bankruptcy.
According to a report filed Monday with the Securities and Exchange Commission, the Columbus-based company has been granted a two-week extension of the forbearance agreements made earlier this month.
The agreements will now be extended until April 14th at 11:59 p.m.
During the period under review, the Retail Real Estate Investment Trust, which has 100 malls in the United States, continued to engage bondholders and lenders to restructure its capital structure.
Earlier this month, Bloomberg reported that Guggenheim Securities LLC, a Washington Prime global investment firm that helped it with the financial talks, was discussing a potential $ 150 million debtor loan with prospective lenders.
The agreements were announced in Washington Prime’s fourth quarter and full year 2020 financial results on March 16. That was one day before a 30-day grace period the company had skipped in February to make a $ 23.2 million loan payment.
The report also contained other sobering details about the company’s financial health. Washington Prime closed the last three months of 2020 with a net loss of $ 111.4 million, and management in the report noted significant doubts about the company’s “ability to continue as a going concern …”
Some of the discussions so far have included reorganization through Chapter 11 bankruptcy, the report said.
Over the course of the recent financial turmoil, the company has said that business will continue as usual at its malls, including Southern Park Mall.
It later confirmed in a press release that it remains committed to investing more than $ 30 million in the Southern Park Mall over the next several years. According to the company, around $ 9 million has already been spent.
These investments include rainwater infrastructure, a walking and biking trail through the mall, green spaces called DeBartolo Commons, a link from DeBartolo Commons to Boardman Park, a retail and entertainment center, and expansions to real estate, sales and income tax bases.
Washington Prime stock closed trading Monday at $ 2.18 per share, up 4.31 percent. The stock fell 60 percent to $ 2.51 per share after Bloomberg reported March 4 that the company was considering bankruptcy.