After the Covid-19 outbreak curtailed in-person shopping, Washington Prime Group Inc., a real estate investment trust that controls enclosed malls and strip shops across the United States, filed for bankruptcy.
The Chapter 11 petition in Houston allows Washington Prime to keep functioning while it seeks approval from the court for a repayment plan.
The Columbus, Ohio-based company, which owns and operates roughly 100 shopping malls, had its bonds default in 2020 when rent collections stopped up and tenants went out of business. It started negotiating with its creditors last year, and in February, it missed a $23 million bond interest payment. During the discussion, creditors have been extending a forbearance agreement.