COLONIAL HEIGHTS, Va. (WWBT) - CBL Properties, which owns the Southpark Mall in Colonial Heights, has filed for bankruptcy protection.
The company and other related entities have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court, according to a release. The filing will allow the company to recapitalize and restructure portions of debt.
“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,” a release said.
Under a restructuring plan, it will give the company a “significantly stronger balance sheet” by reducing debt and preferred obligations by approximately $1.5 billion.
“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. “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.”
According to a release, CBL Properties owns 107 properties across 26 states.
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