Washington Prime Group files for Chapter 11 protection

Washington Prime Group and some of its subsidiaries have filed for Chapter 11 restructuring relief in the United States Bankruptcy Court for the Southern District of Texas.

Before filing, WPG entered into a restructuring support agreement with creditors that hold approximately 73% of the principal amount of its secured corporate debt and 67% of its unsecured notes. It intends to use Chapter 11 protection to execute a financial restructuring of its debt in order to strengthen its business operations.

In addition, the company states it has secured $100 million in financing from consenting creditors to support day to day operations of its centers. The restructuring agreement provides WPG with a four-year extension of its remaining credit facility debt and contemplates a $325 million equity rights offering with SVPGlobal as plan sponsor.

WPG was formed in 2014 following a spin-off of properties by Simon Property Group. It acquired Glimcher Realty in 2015. It owns more than 100 malls and shopping centers in the U.S., with major concentrations in the Midwest, the Northeast, Texas, and Florida.