Washington Prime Group, the company that owns Mesa Mall, has filed for Chapter 11 chapter, it introduced to traders on Sunday.
In a letter to tenants, Washington Prime mentioned that that is as a result of COVID-19 pandemic and that day-to-day operations for malls similar to Mesa Mall, 2424 U.S. Freeway 6 & 50, will probably be unaffected by the choice.
Mesa Mall spokesperson Caitlyn Love couldn’t touch upon issues and redirected The Each day Sentinel to company communications.
“It’s enterprise as common at Mesa Mall, together with lively leasing and property administration. The COVID-19 pandemic has created vital challenges for a lot of consumer-facing corporations, together with Washington Prime Group,” a Washington Prime spokesperson informed The Each day Sentinel. “The Firm has decided that the Chapter 11 path is the best subsequent step to resolve (its) excellent indebtedness as we emerge from the pandemic. All through the Chapter 11 monetary restructuring, we anticipate enterprise as common at Mesa, the place our tenants, sponsors and workers will proceed working as regular, with a concentrate on offering pleasurable experiences for our company.”
Washington Prime, which additionally owns City Heart at Aurora and over 100 malls nationally, is coming into what it calls a “restructuring help settlement” with a gaggle that represents the vast majority of its shareholders.
It made the choice due to difficulties from the COVID-19 pandemic.
It has secured $100 million in cash for “debtor-in-possession financing” to assist fund operations throughout the Chapter 11 course of, in keeping with the discharge.
It filed within the U.S. Chapter Courtroom for the Southern District of Texas in Houston, in keeping with the discharge.
In a FAQ for distributors, Washington Prime mentioned that’s has the entire crucial capital to proceed day-to-day operations. Within the FAQ, Washington Prime mentioned that, with reference to pursuing promoting the corporate, it will “proceed to pursue all strategic alternatives to maximise worth for all of its stakeholders.”
An entity normally recordsdata for Chapter 11 when it wants time to restructure its money owed. The entity retains management of its enterprise whereas being topic to the jurisdiction and oversight of the court docket.
These instances have a tendency to finish three alternative ways for the debtor: reorganization, dismissal or conversion to Chapter 7 chapter, which leads to the enterprise ceasing operations and promoting its belongings to repay money owed.
The announcement comes off the heels of different corporations similar to JCPenney and J. Crew, each of that are shopping center mainstays, making comparable selections due to the COVID-19 pandemic.
The primary day listening to was on Monday, and the subsequent court docket look will probably be an omnibus listening to on Thursday at 10 a.m. native time.