Judge Approves Plymouth Meeting Mall, Willow Grove Mall Owner’s Bankruptcy Restructuring

The court approved restructuring plan allows PREIT to borrow an additional $130 million in loans. Image via Wikimedia Commons.

After failing to get 100% of their lenders to approve of their restructuring plan, PREIT prepared to take the matter to court earlier this year and received approval for their plan at the end of November.

Per Jacob Adelman of The Philadelphia Inquirer, this new plan allows PREIT to borrow an additional $130 million in loans, in exchange for going through bankruptcy, and the properties that PREIT owns outright now becoming collateral for their lenders.

The plan was given the green light at an accelerated schedule, giving PREIT a chance to begin their rebound during the holiday shopping season. That is especially important for the longevity of some of PREIT’s stronger properties, such as Willow Grove Mall, and the Plymouth Meeting Mall.

In addition to the extra funds this plan makes available to PREIT, it also paves the way for their plan to sell off some of their properties that have fallen into disuse.

After the news broke, PREIT’s chief executive, Joseph F. Coradino, released a statement saying, “We look forward to emerging from this process as a stronger, more innovative platform for our business partners.”

Though PREIT had needed 100% of their lenders to approve of their initial plan, it was only one lender who holds 5% of PREIT’s debt who held out on making it unanimous. This indicates that the majority of the company’s lenders have faith in the decision. Considering PREIT has close to $1 billion in debt, having that kind of support will no doubt be important as they move forward.

An attorney representing PREIT, Richard A. Chesley, articulated that unity, saying, “This result, in the midst of the Christmas holiday shopping season, is a testament to all parties’ extraordinary efforts to reach a consensual restructure.”

To learn more about PREIT’s restructuring plan you can read the article from The Philadelphia Inquirer by clicking here.