PREIT (Pennsylvania Real Estate Investment Trust), the owner of the Springfield Mall, came out of Chapter 11 bankruptcy Friday with a deal that gives access to up to $130 million in capital, writes Ryan Sharrow for Philadelphia Business Journal.
It also provides flexibility in paying off the company’s $1 billion in debt.
PREIT stock shares closed up 13 percent following the Friday announcement.
PREIT filed Nov. 1 for Chapter 11 bankruptcy protection after it failed to get 100 percent approval of its restructuring plan. While 95 percent of its debtors approved, Strategic Value Partners, which owns 5 percent of PREIT’s debt, did not.
They have since relented and approved the pre-packaged plan.
“Having quickly and efficiently completed our financial restructuring, PREIT is now a more resilient company with additional resources and financial flexibility to continue delivering terrific experiences for consumers and outstanding service for our retail partners,” PREIT CEO Joseph Coradino said in a statement Friday.
PREIT’s malls stayed open during the bankruptcy.
Besides the Springfield Mall, PREIT’s properties include Willow Grove Park, Plymouth Meeting Mall, Cherry Hill Mall and Fashion District Philadelphia.
Read more about PREIT at Philadelphia Business Journal.