GRAND RAPIDS, Mich. — PREIT, the company that owns Woodland Mall and other shopping malls across the U.S., has filed for Chapter 11 bankruptcy, according to documents obtained by Fox 17.
The filing will not affect Woodland Mall nor its operations, said Heather Crowell, executive vice president of strategy and communications for PREIT.
The company was able to come to terms with “an overwhelming majority” of its lenders, but needed an agreement from one remaining bank, Crowell said.
“We have a strong portfolio in key markets with high barrier to entry, a diverse tenant base and a clear strategy to continue improving our properties through the introduction of a mix of uses,” Crowell said. “We are proud of the work we do, look forward to a stronger future and expect this process will conclude quickly.”
PREIT’s restructuring plan will give the company $150 million in new capital, as well as two to three years of runway.
It’s supported by 95 percent of their lenders.
Crowell says filing for bankruptcy is just a tactic to get the last lender to support the restructuring plan.
Employees, vendors and suppliers will continue to be paid as usual and PREIT’s shares will continue to trade on the New York Stock Exchange.