Despite the group that owns it filing for bankruptcy, Paddock Mall will continue its operations as normal.
The Washington Prime Group, which operates over 100 properties across the United States, made the bankruptcy announcement to shareholders through a press release on June 13.
“The COVID-19 pandemic has created significant challenges for many companies, including Washington Prime Group, making a Chapter 11 filing necessary to reduce the Company’s outstanding indebtedness,” reads the press release. It explains that throughout the restructuring process, the organization will continue to “serve its guests” and serve as a “preeminent operator of retail town centers.”
The release indicates that the company entered into Chapter 11 after executing a restructuring support agreement with creditors, led by SVPGlobal, that hold approximately 73% of the principal amount outstanding of the company’s secured corporate debt and 67% of the principal amount outstanding of its unsecured notes.
According to the company’s website, Washington Prime Group operates a dozen properties in the state of Florida, including nearby Gaitway Plaza as well.
The statement indicates that Washington Prime Group will will utilize Chapter 11 to implement a comprehensive and consensual financial restructuring of the Company’s corporate-level debt that will allow the Company to substantially deleverage its balance sheet and strengthen its business and operations going forward.
“Washington Prime Group’s guests, retailers and business partners can expect business as usual at all of the company’s retail town centers throughout the proceedings,” reads the statement.