COLUMBUS, OH. (WMBD) — Washington Prime Group, the company that owns Northwoods Mall, announced it’s filing for Chapter 11 bankruptcy.
The company executed a restructuring support agreement (RSA) with creditors, led by SVPGlobal, who holds about 73% of the company’s debt and 67% of the company’s unsecured notes.
The company is utilizing Chapter 11 to create a “comprehensive and consensual financial restructuring of the company’s corporate-level debt,” stated in a press release by Business Wire.
Company officials said the decision will allow them to deleverage the companies balance sheet and strengthen business operations moving forward. They plan to do this either through a “full equitization of the Company’s unsecured notes or an alternative value-maximizing transaction that would repay, in full in cash, all of the Company’s corporate-level debt.”
Washington Prime Group has secured $100 million in financing from the Consenting Creditors to support day-to-day operations while going through the Chapter 11 process. Their plan is to keep business running as usual.
Lou Conforti, CEO and Director of Washington Prime Group said, “The company’s financial restructuring will enable WPG to right size its balance sheet and position the Company for success going forward. During the financial restructuring, we will continue to work toward maximizing the value of our assets and our operating infrastructure. The company expects operations to continue in the ordinary course for the benefit of our guests, tenants, vendors, stakeholders and colleagues.”