Chattanooga-based mall owner CBL Properties on Wednesday announced that it will have more time for talks with creditors.
The Petition Date under the Restructuring Support Agreement has been extended from Oct. 15 to Nov. 2, 2020. The RSA was entered into on August 18, 2020, with certain beneficial owners and/or investment advisors or managers of discretionary funds, accounts, or other entities representing in excess of 60 percent, including joining noteholders added pursuant to joinder agreements, of the aggregate principal amount of the Operating Partnership’s 5.25 percent senior unsecured notes due 2023, the Operating Partnership’s 4.60 percent senior unsecured notes due 2024 and the Operating Partnership’s 5.95 percent senior unsecured notes due 2026.
Officials said, "The company is continuing collaborative negotiations with its senior, secured lenders and the Noteholders to attempt to reach a consensual arrangement with both parties.
In the event that such an arrangement were reached, the Company and the Noteholders would amend the RSA to include its senior, secured lenders. The agreement may be amended by the Company and with the consent of noteholders representing at least 75% of the Unsecured Notes that are held by noteholders that are party to the RSA.
"As discussions with its lenders continue, the Company has elected to not make the $6.9 million interest payment due and payable on October 15, 2020, with respect to the 2024 Notes. Under the indenture governing the 2024 Notes, the Operating Partnership has a 30-day grace period to make the Interest Payment before the nonpayment is considered an “event of default” with respect to the 2024 Notes."
The latest information on CBL’s restructuring, including news and frequently asked questions, can be found at cblproperties.com/restructuring.