ASHLAND Washington Prime Group Inc., which owns Ashland Town Center among about 100 shopping centers in the country, announced Sunday that it and some of its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, according to Business Wire.
The Business Wire report states the company entered Chapter 11 after executing a restructuring support agreement (RSA) with creditors that hold about 73% of the principal amount outstanding of Washington Prime Group’s secured corporate debt and 67% of the principal amount outstanding of the company’s unsecured notes. SVPGlobal leads that group of creditors.
Washington Prime Group will utilize Chapter 11, according to Business Wire, to implement a financial restructuring of the company’s corporate-level debt.
“The company’s financial restructuring will enable WPG to right size its balance sheet and position the company for success going forward,” said Lou Conforti, CEO and Director of Washington Prime Group. “During the financial restructuring, we will continue to work toward maximizing the value of our assets and our operating infrastructure. The company expects operations to continue in the ordinary course for the benefit of our guests, tenants, vendors, stakeholders and colleagues.”