Springfield Mall Owner Exits Bankruptcy With New Leadership
PREIT, a long-struggling mall investor, has a new board and CEO after declaring bankruptcy for the second time in three years. The Pennsylvania Real Estate Investment Trust (PreIT), which owns the Springfield mall and numerous other properties, filed for Chapter 11 bankruptcy in December and has exited the restructuring process as a private entity managed by a small group of investment firms. The company also changed its CEOs, with Joseph F. Coradino's tenure ending after a 12-year tenure. As part of the restructuring, PREIT gave up its stake in the Fashion District Philadelphia shopping mall and reduced its debt by $880 million and received an additional five years to repay its loans as part of its agreement.
نشرت : قبل شهر بواسطة Max Bennett في Business Finance
The Pennsylvania Real Estate Investment Trust (PREIT), which owns the Springfield mall and numerous other properties, filed for Chapter 11 bankruptcy in December. PREIT has exited the restructuring process as a private entity managed by a small group of investment firms, the company announced Monday. PREIT has also changed CEOs, with Joseph F. Coradino's 12-year tenure in the position ending Monday. He will serve as a consultant during the transition to new leadership. PREIT also has a new board, relieving its former board members of their duties, according to the Philadelphia Inquirer.
Headquartered in Philadelphia, PREIT owns about 15 malls, mostly in the Mid-Atlantic. PREIT thrived in the mid-2000s, hitting more than $700 per share. But its stock values cratered during the Great Recession and totaled $42.75 per share in early 2009.
The company rebuilt some of that value, reaching about $350 per share in 2016. But thereafter, stock values steadily declined, with the pandemic dealing the final blow before PREIT filed for bankruptcy in November 2020. PREIT emerged from the first bankruptcy several months later, but the turmoil continued. The company declared bankruptcy one again in December, when it hit a deadline for about $1.1 billion in debt payments.
As part of the restructuring, the company went private and gave $10 million to its stockholders. PREIT was worth nearly $2 billion in 2017. During bankruptcy, PREIT gave up its stake in the Fashion District Philadelphia shopping mall. But the company continued operating its remaining assets without service interruptions.
PREIT also reduced its debt by $880 million and got an additional five years to repay its loans as part of the agreement. The company is now led by two New York-based firms — Redwood Capital Management LLC and Nut Tree Capital Management, which both invest in financially struggling entities. Jared Chupaila became PREIT's new CEO after most recently serving the same role with Brookfield Properties — one of the world's largest owners of real estate, including retail centers throughout the nation.
المواضيع: Bankruptcy