Washington Prime Misses Mortgage Fee, Negotiating Potential Chapter 11 – Enterprise Journal Each day

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YOUNGSTOWN, Ohio – Washington Prime Group Inc., proprietor of the Southern Park Mall, reported Tuesday “that there exists substantial doubt in regards to the firm’s skill to proceed as a going concern as outlined by typically accepted accounting ideas.

In reporting its fourth-quarter monetary outcomes, the Columbus-based operator of buying facilities, mentioned it misplaced $111.4 million within the fourth quarter and would default on a $23.2 million curiosity fee due in the present day to the senior word holders of associated entity WPG LP.

Washington Prime mentioned it has entered into forbearance agreements with its collectors that expire March 31. That offers the corporate time to proceed “to restructure its capital construction,” the submitting acknowledged.

The corporate acknowledged that it could must restructure by Chapter 11 chapter reorganization.

“Though the corporate continues to be open to all discussions with the holders of the notes and its different stakeholders concerning a possible restructuring, there may be no assurance the corporate will attain an settlement concerning a restructuring in a well timed method, on phrases which can be engaging to the corporate, or in any respect,” Washington Prime mentioned Tuesday. “The corporate expects to proceed to supply high quality service to its prospects with out interruption and work with its enterprise companions as normal through the course of those discussions and any potential transaction.”

The $111.4 million internet loss within the fourth quarter compares to internet revenue of $17.1 million within the fourth quarter of 2019, in line with the report.

“The year-over-year distinction relates primarily to the numerous impacts of tenant lease modifications and elevated dangerous debt expense associated to delinquent receivables through the fourth quarter of 2020 because of the ongoing COVID-19 pandemic,” the corporate mentioned.

Copyright 2021 The Enterprise Journal, Youngstown, Ohio.

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