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Report: Washington Prime Could Apply For $ 150 Million Bankruptcy Loan – Business Journal Daily

YOUNGSTOWN, Ohio – Bloomberg reported on Monday that Guggenheim, the investment bank of Washington Prime Group Inc., has connected with potential lenders for a potential $ 150 million debtor-in-owner loan.

Bloomberg reports that negotiations are underway and conditions may change. Washington Prime stock fell about 12.3% to $ 2.72 after Bloomberg’s report. At the time of this publication, the share price stood at $ 2.78.

Washington Prime has approximately 100 shopping centers across the United States, including the Southern Park Mall in Boardman. Last week, the Columbus-based shopping center operator announced that it had lost $ 111.4 million in the fourth quarter and would default on a $ 23.2 million interest payment due on March 17.

The company 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”, according to the file.

At the time, the company indicated 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 potential restructuring, there can be no assurance that the company will reach a timely restructuring agreement on attractive terms. at the company, or not at all, ”Washington Prime reported at the time. “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.”

Published by The Business Journal, Youngstown, Ohio.


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