Mall owners CBL Properties (Chattanooga, Tenn.) and Pennsylvania Real Estate Investment Trust (PREIT, Philadelphia) have filed for Chapter 11 bankruptcy protection, reports CNBC.
PREIT, the largest mall owner in Philadelphia, filed a petition to execute a prepackaged financial restructuring plan that would free up $150 million in new borrowing. CBL owns 107 properties, including outlet centers, in 26 states and has entered into a restructuring agreement with a group of lenders.
“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 … will provide CBL with the best plan to emerge as a stronger and more stable company,” CBL CEO Stephen Lebovitz said in a statement.