PREIT (OTCQB:PRET), a Philadelphia-headquartered operator of shopping centers in the mid-Atlantic region, has filed for Chapter 11 bankruptcy for the second time in three years.
The company announced it is carrying approximately $880 million in total indebtedness and has received commitments for new money debtor-in-possession and exit revolver financing in an aggregate amount of approximately $135 million from a group of leading investors led by Redwood Capital Management LLC and Nut Tree Capital Management LP.
In advance of the filing, the company executed a Restructuring Support Agreement with its first and second lien lenders and stated that it expected to emerge from bankruptcy by early February. PREIT’s previous bankruptcy occurred in November 2020 when the Covid-19 pandemic disrupted the retail sector.
Joseph F. Coradino, chairman and CEO of PREIT, said this action will “position a restructured PREIT to execute on strategic initiatives to continue transforming its portfolio for the tenants and communities it serves. We look forward to quickly emerging from this process as a financially stronger company with the resources and support to continue creating diverse, multi-use property experiences throughout our portfolio.”
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