13 Jun, 2021

Washington Prime seeks Chapter 11 bankruptcy protection

Washington Prime Group Inc., a real estate investment trust that owns regional malls, filed for Chapter 11 bankruptcy protection in the Southern District of Texas court.

In the June 13 filing, the company reported estimated assets in the range of $1.00 billion to $10.00 billion. The filing was first reported by Bloomberg News.

Washington Prime has said in recent months that it was in talks with its lenders to modify its capital structure.

Bloomberg reported that the company's bonds plunged into distressed territory in 2020 as rent collections dried up and tenants filed for bankruptcy or ceased operating amid the pandemic. The company's operating partnership, Washington Prime Group LP, said early in June that the forbearance period under agreements with certain beneficial owners of its senior notes had been extended.

Guggenheim Securities LLC is serving as investment banker for the company in the matter, and Alvarez and Marsal LLC is serving as financial adviser. Kirkland & Ellis LLP is serving as general bankruptcy counsel in the proceeding, and Jackson Walker LLP is serving as local bankruptcy counsel.