Lindale Mall owner Washington Prime Group files for Chapter 11 bankruptcy
CEO Says Filing Enables Company to “Resize Balance Sheet”
Washington Prime Group, owner of the Lindale Mall in Cedar Rapids, has secured $ 100 million in new money “debtor-in-chief financing” which will be used in the day-to-day operations of the mall. (Liz Martin / The Gazette)
Washington Prime Group, owner of the Lindale Mall in Cedar Rapids, filed for Chapter 11 bankruptcy on Sunday night, but expects the mall’s operations to continue “uninterrupted.”
The company plans to use the deposit to “implement a comprehensive and consensual financial restructuring,” according to a press release.
The company has secured $ 100 million in new “debtor-in-charge financing” that will be used in the day-to-day operations of the mall.
Lou Conforti, CEO and director of Washington Prime Group, said in the statement that the bankruptcy filing allows the company to “resize its balance sheet and position the company for success in the future.”
In a Chapter 11 bankruptcy filing, a company asks to restructure its debt so that it pays some but not all of it. Chapter 13 bankruptcy requires repayment of all debts over an extended period, and Chapter 7 bankruptcy involves closing of operations.
The restructuring comes as interest rates remain relatively low. A 30-year Freddie Mac fixed rate mortgage is on average 2.96% as of June 10.
At the same time last year, it was 3.21 percent. Three years ago it was 4.54%.
Washington Prime Group is based in Columbus, Ohio, and operates more than 100 shopping centers, according to its website. Its only other location in Iowa is Southern Hills Mall in Sioux City.
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