Diverse retail and experiential destinations operator, PREIT, has reportedly filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the District of Delaware. The company intends to proceed with the implementation of its Prepackaged Plan, which focuses on its recapitalization as well as the extension of debt maturities.
According to PREIT CEO, Joseph F. Coradino, the company is thrilled to advance via reinforcing the organization’s balance sheet and setting it for long-term success through the organization’s Prepackaged Plan. Coradino has also expressed his gratitude for the remarkable support obtained from a considerable majority of lenders, which is likely to facilitate the completion of its financial restructuring on an accelerated basis.
This announcement has no effect on the company’s operations, comprising employees, communities, tenants, and vendors, given that it remains dedicated to improving its portfolio, further continuing the delivery of top-tier experiences, added Coradino. PREIT eagerly looks ahead to rapidly emerging from this process as a financially robust organization with the overwhelming backing of its lenders for continuing the development of multi-use and diverse ecosystems.
The filing will ensure PREIT’s consistency with its business operations without cessation while the company secures required approvals for its financial restructuring plan, add sources. PRIET’s prime focus remains on the creation of compelling experiential and retail destinations while putting ahead the safety and health of its communities, employees, partners, and customers.
PREIT’s entry into the RSA with its bank lenders was announced on October 14, 2020, when the banks had committed to furnish an additional sum of $150 million for the recapitalization of its business and extension of its debt maturity schedule, by backing continued execution of its strategic priorities and operations. The company’s Prepackaged Plan reportedly secured overwhelming support from 95 per cent of its creditors, following the execution of the RSA, add sources.