Washington Prime Group found stability through bankruptcy protection, allowing the company to restructure its debt and regain financial footing. This move was a crucial step in the company's turnaround.
The company filed for Chapter 11 bankruptcy protection in 2019, which gave them a temporary reprieve from creditors and allowed them to develop a plan to pay off debts.
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Washington Prime Group Bankruptcy
The company emerged from bankruptcy after a successful restructuring.
This was made possible with the help of funds managed by Strategic Value Partners, LLC and its affiliates, who served as the plan sponsor.
The bankruptcy process was overseen by the United States Bankruptcy Court for the Southern District of Texas, which confirmed the company's second amended plan of reorganization on September 3, 2021.
The plan aimed to reduce the company's debt by nearly $950 million through the equitization of unsecured notes.
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Chapter 11 Bankruptcy Protection
Washington Prime Group filed for Chapter 11 bankruptcy protection on October 15, 2020, seeking to restructure its debt and stabilize its financial situation.
The company listed $2.8 billion in assets and $4.6 billion in liabilities in its bankruptcy filing.
This move allows the company to continue operating while it works out a plan to pay off its debts.
Under Chapter 11, Washington Prime Group will have the opportunity to restructure its debt and potentially reduce its financial obligations.
The bankruptcy filing will also give the company a temporary reprieve from creditor lawsuits and collection activities.
Washington Prime Group's bankruptcy filing was approved by the U.S. Bankruptcy Court for the Southern District of Texas on October 16, 2020.
The company's plan to restructure its debt and exit bankruptcy will be subject to court approval.
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Emerges from Bankruptcy
Washington Prime Group emerged from bankruptcy on October 21, 2021, after a chapter 11 restructuring.
The company's second amended plan of reorganization, confirmed by the United States Bankruptcy Court for the Southern District of Texas on September 3, 2021, played a crucial role in its emergence from bankruptcy.
The plan provided for a deleveraging of the company's balance sheet by nearly $950 million through the equitization of unsecured notes. This significant reduction in debt will likely have a positive impact on the company's financial stability.
SVPGlobal, a fund managed by Strategic Value Partners, LLC and its affiliates, participated in the equity rights offering and backstopped it with $325 million. This investment helped finance the various cash payments required under the plan.
As a result of its recovery on its holdings of the equitizing unsecured notes and its participation in the equity rights offering, SVPGlobal now owns a majority of the equity of the reorganized company. This significant stake gives SVPGlobal a substantial amount of control over the company's future decisions.
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Frequently Asked Questions
What happened to Washington Prime Group, Inc.?
Washington Prime Group, Inc. filed for bankruptcy in June 2021, marking a significant financial challenge for the company. Learn more about the circumstances surrounding this event and its impact on the retail industry.
What is the revenue of the Washington Prime Group?
The Washington Prime Group's revenue for 2021 was $0.52 billion USD. This figure reflects the company's total revenue over the past 12 months.
Sources
- https://en.wikipedia.org/wiki/Washington_Prime_Group
- https://www.retaildive.com/news/washington-prime-group-facing-an-uncertain-future-will-go-private/606209/
- https://www.financierworldwide.com/washington-prime-group-files-for-chapter-11-bankruptcy-protection
- https://www.davispolk.com/experience/washington-prime-group-emerges-bankruptcy
- https://perennialroi.com/wpg-sale-leaseback/
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