Washington Prime misses loan payment, negotiates possible Chapter 11 – Business Journal Daily
YOUNGSTOWN, Ohio – Washington Prime Group Inc., owner of Southern Park Mall, reported Tuesday “that there is substantial doubt as to the ability of the business to continue as a going concern as defined by generally accepted accounting principles.
Releasing its fourth quarter financial results, the Columbus-based shopping center operator said it lost $ 111.4 million in the fourth quarter and would default on an interest payment of $ 23.2 million. dollars owed today to the senior bondholders of related entity WPG LP.
Washington Prime has said it has forbearance agreements with its creditors that expire on March 31. This gives the company time to continue “to restructure its capital structure,” the file said.
The company acknowledged that it may need to restructure through a Chapter 11 bankruptcy reorganization.
“While the company remains open to all discussions with noteholders and its other stakeholders regarding a possible restructuring, there can be no assurance that the company will reach a timely restructuring agreement on attractive terms. to the business, or not at all, ”Washington Prime said Tuesday. “The company expects to continue to provide uninterrupted quality service to its customers and to work with its business partners as usual during these discussions and any potential transactions.”
The fourth quarter net loss of $ 111.4 million compares with net income of $ 17.1 million in the fourth quarter of 2019, according to the report.
“The year-over-year difference is mainly related to the significant impacts of tenant lease changes and the increase in bad debts related to bad debts during the fourth quarter of 2020 due to the COVID pandemic- 19 in progress, ”the company said.
Copyright 2021 The Business Journal, Youngstown, Ohio.