Mall owner CBL properties plans to file for bankruptcy. This latest bankruptcy just adds to the ccoronavirus toll of retail and retail affiliated companies that have had to declare bankruptcy. Brooks Brothers, J. Crew, Neiman Marcus, among numerous other companies have declared bankruptcy over the last several months. The news was reported by Bloomberg.
Earlier this week, CBL Properties said they had reached an agreement with some of their creditors to hand over unsecured notes. The company is still in negotiation with other lenders who aren't involved in the deal. CBL Properties is currently straddled with over 3 billion dollars in debt. Court proceedings are expected to help unload 900 million dollars of that debt.
CBL Properties was impacted by tenants who were unable to pay their rent due to stores being closed during the coronavirus pandemic. CBL malls are expected to stay open during the bankruptcy proceedings.
A bankruptcy filing is expected no later than October 1. CBL still has 200 million dollars in cash on hand to continue operations and handle court proceedings. CBL is a family owned company, and under the proposed restructuring plan common and preferred stockholders would share 10 percent of the company.