The Pennsylvania Real Estate Investment Trust has filed for Chapter 11 bankruptcy, the second time it has taken this step since the pandemic in 2020.
The REIT owns several malls in the Philadelphia region that will stay open as the company works to restructure itself and reduce its debt load by about $880 million. It also said that only "first lien lenders," who have priority, will be paid back in full.
"Following the pandemic disruption, PREIT has worked tirelessly to enhance the portfolio, dramatically improve occupancy and diversify its tenancy," said chairman and CEO Joseph F. Coradino in prepared remarks. "However, unusual economic conditions have limited the company's options with respect to its debt obligations as meaningful achievements on the operating front were met with inflation and rising interest rates."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
