Washington Prime Misses Loan Payment, Possible Chapter 11 Negotiation Business Journal Daily
YOUNGSTOWN, Ohio — Washington Prime Group Inc., owner of Southern Park Mall, reported on Tuesday “that there is substantial doubt about the company’s ability to continue as a going concern as defined by generally accepted accounting principles.”
In the release of 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 due today to senior noteholders of related entity WPG LP.
Washington Prime said it has entered into forbearance agreements with its creditors that expire on March 31. This gives the company time to continue “restructuring its capital structure,” the filing said.
The company has acknowledged that it may need to restructure through a reorganization in the event of a Chapter 11 bankruptcy.
“While the company continues to be open to all discussions with noteholders and its other stakeholders regarding a possible restructuring, there can be no assurance that the company will reach an agreement regarding a timely restructuring on attractive terms. . to the company, or not at all,” Washington Prime said on Tuesday. “The Company expects to continue to provide uninterrupted quality service to its customers and to work with its business partners as usual over the course of these discussions and any potential transactions.”
The net loss of $111.4 million in the fourth quarter compares to a net profit of $17.1 million in the fourth quarter of 2019, according to the report.
“The year-over-year difference primarily relates to the material impacts of tenant lease changes and the increase in bad debts related to past due receivables during the fourth quarter of 2020 due to the COVID-19 pandemic. ongoing,” the company said.
Copyright 2022 The Business Journal, Youngstown, Ohio.