Washington Prime Group Emerges from Chapter 11
COLUMBUS, Ohio – Washington Prime Group Inc. announced Thursday that it and each of its debtor affiliates have emerged from the Chapter 11 process, completing the company’s financial restructuring and the implementation of its plan of reorganization.
The plan, led by plan sponsor SVPGlobal, received overwhelming support from the company’s creditors and equity holders. It was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on Sept. 3.
Washington Prime Group is the owner of the Southern Park Mall in Boardman.
Through the reorganization process, the company’s debt was reduced by nearly $1 billion and its overall liquidity improved. It is now operating as a private holding company, majority owned by SVPGlobal.
As such, Lou Conforti is stepping down as CEO. Mark Yale, WPG executive vice president and chief financial officer, and Josh Lindimore, executive vice president and head of leasing, will serve as interim co-CEOs. In addition, Sujan Patel, Jeff Johnson and Martin Reid have been named new members of the board of directors.
As WPG emerges from bankruptcy, the timing is right for me to step down from my role as CEO and move to an advisory role. It is a ‘new beginning’ for WPG, and myself,” Conforti said in a prepared statement. “I have thoroughly enjoyed leading this organization and wish it the greatest success.”
Victor Khosla, SVPGlobal founder and chief investment officer, said the company “fully expect[s] that WPG’s strong portfolio of assets will enable it to continue as a retail leader, and we look forward to partnering with WPG’s experienced team. We thank Lou for leading WPG through an unprecedented period of change. We wish him well.”
SVPGlobal is a global investment firm focused on distressed debt, special situations and private equity opportunities with more than $18 billion in assets under management. The firm, established by Khosla in 2001, has invested more than $36 billion of capital since its inception in 2001, and led over 150 significant transactions.
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