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Town Center Plaza Majority Owner Files Chapter 11

Washington Prime Group, majority stake owner of the Leawood shopping center, has filed for Chapter 11 bankruptcy protection. The real estate investment trust said it has obtained $100 million in financing under a restructuring agreement with creditors, to support daily operations.

The Ohio-based majority owner of Town Center Plaza and Town Center Crossing mall properties has filed for Chapter 11 bankruptcy protection.

Washington Prime Group, a real estate investment trust that owns about 100 malls nationwide, is in forbearance on a $23.2 million interest payment that was due Feb. 15.

Washington Prime has assets estimated at a little more than $4 billion and debt of nearly $3.5 billion, according to court documents filed in the U.S. Bankruptcy Court for the Southern District of Texas.

The company says it has secured $100 million in new debtor-in-possession financing under a restructuring agreement with several creditors led by investment firm SVPGlobal.

Under its restructuring agreement, Washington Prime seeks to deleverage its balance sheet by nearly $190 million.

 

Published June 2021