For the second time in a little over three years, Philadelphia-based PREIT, owner of the Plymouth Meeting Mall, has filed for Chapter 11 bankruptcy protection, writes Paul Schwedelson for the Philadelphia Business Journal.
The company, which has more than $1 billion in debt coming due, already has a restructuring deal in place with its lenders.
PREIT made the bankruptcy filing on Sunday voluntarily in the U.S. Bankruptcy Court for the District of Delaware. If it receives court approval, the company will be taken private and get additional funding from an investor group.
PREIT has also agreed to relinquish its 50 percent stake in the Fashion District, co-owned with Macerich.
PREIT’s credit facilities were set to mature at the end of last week with a $1.1 billion balance. Three days before the Sunday deadline, the company entered a restructuring support agreement under which it can perform a “comprehensive restructuring of the debtors’ first lien and second lien funded debt” upon the voluntary bankruptcy.
“The [bankruptcy] filing will ensure that PREIT can continue all business operations without interruption while it obtains necessary approvals of its financial restructuring,” said PREIT.
Read more about PREIT, owner of Plymouth Meeting Mall, in the Philadelphia Business Journal.
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