The
company's estimated assets ranged from $1 billion to $10 billion
as did its estimated liabilities, according to a filing made in
the United States Bankruptcy Court for the Southern District of
Texas.
Reuters earlier reported that the Columbus, Ohio-based company,
formed in 2014 following a spin-off from mall giant Simon
Property Group Inc, was preparing to seek bankruptcy protection
as soon as this week.
The company said it has secured $100 million of so-called
debtor-in-possession financing to aid operations during
bankruptcy proceedings, adding it entered a restructuring
support agreement with creditors led by SVPGlobal.
The agreement provides for a deleveraging of the company's
balance sheet by nearly $950 million, Washington Prime said on
Sunday. The agreement contemplates a $325 million equity rights
offering, according to the company.
Fallout from the pandemic last year forced Washington Prime to
close some properties for a time and relax collection of rent
from its tenants, squeezing the mall owner's finances.
During the throes of the pandemic in 2020, Washington Prime's
rental income plummeted about $127 million from 2019 levels due
to the coronavirus outbreak.
During the first three months of this year, Washington Prime's
rental income was off roughly $20 million compared with the same
time in 2020. Its cash flows from operations for the three
months ending in March were $3.3 million, a plunge from $10
million during the same time in 2020.
The U.S. economy is now sharply rebounding with more than 140
million Americans fully vaccinated and businesses reopening.
Nevertheless, previous government stay-at-home orders and
business closures designed to slow the pandemic crushed many
retailers' bottom lines, imperiling their ability to pay rent to
landlords such as Washington Prime.
Other mall owners such as CBL & Associates Properties Inc and
Pennsylvania Real Estate Investment Trust filed for bankruptcy
last year.
(Reporting by Kanishka Singh in Bengaluru; Editing by Stephen
Coates)
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