Company that owns Mesa Mall files for bankruptcy | Business
Washington Prime Group, the company that owns Mesa Mall, has filed for Chapter 11 bankruptcy, he told investors on Sunday.
In a letter to tenants, Washington Prime said this was due to the COVID-19 pandemic and the day-to-day operations of shopping malls such as Mesa Mall, 2424 US Highway 6 & 50, would not be affected by the decision.
Mesa Mall spokeswoman Caitlyn Love was unable to comment and directed The Daily Sentinel to corporate communications.
“It’s business as usual at Mesa Mall, including active rental and property management. The COVID-19 pandemic has created significant challenges for many consumer-facing businesses, including Washington Prime Group, ”a Washington Prime spokesperson told the Daily Sentinel. “The company has determined that the Chapter 11 route is the most effective next step in resolving (its) outstanding debt upon exiting the pandemic. Throughout the Chapter 11 financial restructuring, we expect business to continue in Mesa, where our tenants, sponsors and employees will continue to operate as normal, with an emphasis on providing enjoyable experiences for our customers. clients.
Washington Prime, which also owns Town Center at Aurora and more than 100 shopping centers nationwide, is entering into what it calls a “Restructuring Support Agreement” with a group that represents the majority of its shareholders.
He made this decision because of the difficulties associated with the COVID-19 pandemic.
It has secured $ 100 million in “debtor-in-charge financing” money to help fund operations during the Chapter 11 process, the statement said.
He was filed with the US South District Bankruptcy Court in Houston, the statement said.
In an FAQ for vendors, Washington Prime said it has all the capital it needs to continue its day-to-day operations. In the FAQ, Washington Prime said that when it comes to the continued sale of the business, it “will continue to pursue all strategic opportunities to maximize value for all of its stakeholders.”
An entity typically files a Chapter 11 application when it needs time to restructure its debt. The entity retains control of its activities while being subject to the jurisdiction and oversight of the court.
These cases tend to end in three different ways for the debtor: reorganization, termination, or conversion to Chapter 7 bankruptcy, which results in the business ceasing to operate and selling its assets to pay off debts.
The announcement follows other companies such as JCPenney and J. Crew, both of whom are mainstays of shopping malls, making similar decisions due to the COVID-19 pandemic.
The first day of the hearing was on Monday and the next court appearance will be an omnibus hearing on Thursday at 10 a.m. local time.