, a company that owns several Philly malls, declares bankruptcy for second time){kind=link}
Philadelphia, Pennsylvania – Major Philadelphia area malls’ owner, Pennsylvania Real Estate Investment Trust (PREIT), declared bankruptcy for the second time in three years. PREIT holds property including the Fashion District in Philadelphia, Willow Grove Park, Plymouth Meeting, Springfield malls in the suburbs, and Cherry Hill and Moorestown malls in South Jersey. PREIT filed for Chapter 11 bankruptcy protection on the final day of its deadline to pay back $1.1 billion in debt.
Malls will continue with normal operations
The bankruptcy filing ensures the malls will continue operations without interruption during the upcoming restructuring process. Joseph F. Coradino, PREIT’s CEO, stated his anticipation of emerging from bankruptcy as a financially stronger company with more resources and support to improve their property portfolio.
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PREIT has reorganization plan, plans to reduce its debt by $880 million
Despite its financial situation, PREIT remains confident in its local assets, including Cherry Hill Mall, Plymouth Meeting, and Moorestown malls. PREIT plans to reduce its debt by $880 million under the proposed reorganization plan. It will halt public trading, pay stockholders $10 million, and receive a five-year extension to repay loans.
Awaiting approval from Delaware’s federal bankruptcy court, PREIT’s existing lenders have unanimously agreed to the proposal. The corporation expects to emerge from bankruptcy by early February and will continue to pay its employees, suppliers, and vendors throughout the bankruptcy proceedings.
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PREIT once enjoyed stock values peaking at $721.50 per share in 2005, despite a declining stock price over the past few years, which the pandemic has made worse. The established company in 1960 acquired key properties and thrived in the mid-2000s, but its stocks took a hit in the Great Recession. PREIT filed for bankruptcy in 2020 and emerged one month later, but has since struggled financially.