Court approves PREIT restructuring

Mall owner expects to exit bankruptcy this month

PHILADELPHIA » The owner of several area malls expects to complete its financial restructuring and emerge from Chapter 11 early this month. PREIT ( Pennsylvania Real Estate Investment Trust) confirmed Monday that the U. S. Bankruptcy Court for the District of Delaware has approved its financial restructuring plan.

Once the retail property owner emerges from Chapter 11, it will have access to $ 130 million in new financing to support its operations and the continued execution of its strategic priorities, according to the company. In addition, PREIT’s debt maturity schedule will be extended.

“We look forward to emerging from this process as a stronger, more innovative platform for our business partners,” Joseph F. Coradino, CEO of PREIT, said in a press release. “We were able to reach this outcome on an expedited basis thanks to the overwhelming support of our lenders, as well as the continued support of our employees, customers, tenants and vendors. We will remain focused on operating safely, responsibly and efficiently while maintaining a strong balance sheet.”

Among PREIT’S area properties are: Exton Square Mall in West Whiteland, Chester County; Plymouth Meeting Mall in Plymouth Meeting, Montgomery County; Willow Grove Park Mall in Willow Grove, Montgomery County; and Springfield Mall in Springfield, Delaware County.

“I want to thank the entire

PREIT team for continuing to perform at the highest level throughout this process during the busiest time of year for our business. We are proud that we have continued to deliver terrific

experiences in the communities in which we operate and outstanding service for our retail partners throughout our financial restructuring process and the ongoing COVID- 19 pandemic,” Coradino said, adding that the company’s properties “play an essential role” in the economy of the communities in which it operates.

“We look forward to a brighter future for all PREIT stakeholders as we move forward as a financially stronger company,” he said.

PREIT filed a voluntary Chapter 11 petition Nov. 2, calling the filing the “next step” in executing the company’s financial restructuring plan. In October, the company announced it had entered into a restructuring support agreement with its bank lenders.

At the time of the restructuring agreement announcement,

Coradino said the company had been taking steps to enhance the financial and operation health of the business, “long before the COVID- 19 pandemic hit.” Those steps included: asset sales, anchor repositioning and redevelopment, as well as diversifying the tenant base and simultaneously improving the company’s underlying tenant credit profile.

Headquartered in Philadelphia, PREIT owns and manages retail shopping malls in 12 states in the eastern U. S. with concentration in the Mid- Atlantic and Greater Philadelphia region.

Additional information, including court documents and information about the court- supervised process, is available on PREIT’s restructuring website through PREIT’s claims agent, Prime Clerk at https:// cases. primeclerk. com/ PREIT.

“We were able to reach this outcome on an expedited basis thanks to the overwhelming support of our lenders, as well as the continued support of our employees, customers, tenants and vendors.” Joseph F. Coradino, PREIT CEO

MEDIANEWS GROUP FILE PHOTO The owner of several area malls expects to emerge from the bankruptcy process early this month. PREIT filed for voluntary Chapter 11 in early November. In this file photo is a view of Plymouth Meeting Mall, one of the company’s area malls.