Pennsylvania Real Estate Investment Trust has voluntarily filed for Chapter 11 bankruptcy protection.
In its filing in the United States Bankruptcy Court for the District of Delaware, PREIT listed assets of $2.4 billion and total debt of just more than $2 billion. Of its debt, $913 million is an unsecured loan with Wells Fargo, its largest creditor. The company’s two largest shareholders are Zhengxu He, a Beijing-based investor that owns 8.79% of the company’s stock, and Malvern, Pennsylvania’s Vanguard Group, which owns 7.33%.
The Philadelphia-based PREIT, which owns Springfield Town Center and the Mall at Prince George’s in Greater Washington, said it has gained the support of 95% of its lenders and creditors to commit $150 million to recapitalize its mall business, extend the date of the company’s loans mature and proceed with a prepackaged reorganization under Chapter 11.
PREIT (NYSE: PEI) said it will continue to operate its malls without interruption and pay vendors while it goes through the restructuring process. In addition, it said the proceedings aren’t expected to affect the company’s shareholders.
