CBL Properties said on Monday that CBL & Associates Properties, Inc., CBL & Associates Limited Partnership (the Operating Partnership), and certain other related entities have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, in Houston, TX in order to implement a plan to recapitalize the company, including restructuring portions of its debt.
The company intends to use the Chapter 11 process to implement terms outlined in the Restructuring Support Agreement(RSA) that it entered into on August 18, 2020.
“After months of discussions and consideration of a number of alternatives, CBL’s management and the Board of Directors firmly believe that implementing the comprehensive restructuring as outlined in the RSA through a Chapter 11 voluntary bankruptcy filing will provide CBL with the best plan to emerge as a stronger and more stable company,” said Stephen D. Lebovitz, Chief Executive Officer of CBL.
CBL said the plan will provide the company with a significantly stronger balance sheet by reducing total debt and preferred obligations by approximately $1.5 billion, extending debt maturities and increasing liquidity while maintaining operational consistency.
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“With an aggregate of approximately $1.5 billion in unsecured debt and preferred obligations eliminated and a significant increase to net cash flow, upon emergence, CBL will be in a better position to execute on our strategies and move forward as a stable and profitable business,” said Stephen D. Lebovitz.
CBL said through this process, all day-to-day operations and business of the Company’s wholly owned, joint venture and third-party managed shopping centers will continue as normal.”CBL’s customers, tenants and partners can expect business as usual at all of CBL’s owned and managed properties.”
Lebovitz added, “We have continued negotiations with the lenders under our secured credit facility since the signing of the RSA and expect further discussions in an effort to reach a tri-party consensual agreement between the company, noteholders and credit facility lenders during the bankruptcy process.”
Headquartered in Chattanooga, TN, CBL Properties owns and manages a portfolio of retail centers across the United States. CBL’s portfolio is comprised of 107 properties totaling 66.7 million square feet across 26 states, including 65 high-quality enclosed, outlet and open-air retail centers and 8 properties managed for third parties.
