Southern Park Mall Owners Get Another Extension to Restructure Debt
BOARDMAN, Ohio – The owner of the Southern Park Mall has negotiated an additional extension that will allow it more time to work with its lenders to restructure the company’s debt and to stave off a potential bankruptcy.
Columbus-based Washington Prime Group Inc. said in a federal regulatory filing Monday that lenders had agreed to extend a forbearance agreement with the company until April 28. It was set to expire April 14.
The company said in February that it had missed an interest payment of $23.2 million on notes that was due Feb. 15. Washington Prime was given a 30-day grace period to make a payment before it was deemed in default. Washington Prime and its lenders entered into a forbearance agreement on March 16.
On March 29, noteholders and lenders agreed to extend the forbearance term to April 14. On April 9, the parties again agreed to extend the forbearance period.
“The company is continuing to engage in negotiations with the forbearing noteholders and forbearing lenders to restructure its capital structure,” the filing read.
Washington Prime’s share price closed at $2.07 after trading on Monday. The real estate investment trust, or REIT, posted a 52-week share price high of $17.55.
Washington Prime reported a net loss of $43.7 million during the third quarter of 2020 compared to a net loss of $4.4 million during the same period in 2019, according to its latest financial statements.
Funds for operations during the third quarter stood at $16.6 million compared to $100.9 million during the third quarter of 2019.
Copyright 2023 The Business Journal, Youngstown, Ohio.