Southern Park Mall Owners Get Extension
YOUNGSTOWN, Ohio – Washington Prime Group Inc. received a two-week extension on the deadline of the forbearance agreement reached with owners of its senior notes, according to a Securities and Exchange Commission filing made Monday.
The company reported in the filing that it is “in negotiations and discussions” with forbearing noteholders and lenders to restructure its capital structure, which have agreed to extend the forbearance period that was set to end at 11:59 p.m. April 14.
Washington Prime Group, which operates Southern Park Mall in Boardman and is undertaking a $30 million renovation to the suburban shopping center, a week and a half ago reported it had lost $111.4 million in the fourth quarter and would default on a $23.2 million interest payment due Wednesday.
The company acknowledged it may need to restructure through Chapter 11 bankruptcy reorganization and a week ago said it had connected with prospective lenders for a potential $150 million debtor-in-possession loan.
Despite its financial difficulties, the company said it was moving forward with the Southern Park Mall upgrades, including development work at the DeBartolo Commons outdoor recreation space and at The Bunker and the attached Bunker, Bogey’s, and Steel Valley Brew Works. A full refresh of the mall interior is expected to begin in January 2022.
Copyright 2022 The Business Journal, Youngstown, Ohio.