CBL Comes Up With Over $30 Million To Meet Interest Payments Due; Lebovitz Family Members, CBL Make Share Transactions

  • Wednesday, August 5, 2020

CBL & Associates Limited Partnership on Wednesday came up with over $30 million to cover two interest payments to note holders.

It included an $11.8 million interest payment that was due on June 1 and $18.6 million that was due on June 15.

The financially-ailing Chattanooga-based mall firm earlier said it was unable to make the payments. It has been in talks with creditors after also not making the payments during a 30-day grace period.

Farzana Khaleel, CBL finance vice president, said, "Accordingly, the nonpayment of each of the 2023 Notes Interest Payment and the 2026 Notes Interest Payment no longer constitutes (i) an 'event of default' under the indenture governing the Notes."

She also said, "The company may engage in negotiations and discussions with the holders and lenders of the company’s indebtedness. There can be no assurance, however, that any such discussions will lead to acceptable terms with any party or that the company will otherwise reach any agreement with respect to its indebtedness."

Members of the Lebovitz family and their CBL & Associates reported a number of share transactions that occurred on Friday as talks with creditors wore on.

The Lebovitz family founded CBL in the 1970s. Its extensive mall holdings include Hamilton Place Mall and Northgate Mall.

Alan Lebovitz reported the acquisition of 52,980 shares and 155,847 shares of CBL & Associates. It says he now holds 270,591 shares.

Charles B. Lebovitz reported the acquisition of 756,350 shares, 489,071 shares and 208,675 shares of CBL & Associates on Friday. It says he now owns 16,764,483 shares. He has another 26,565 shares by spouse and another 26,052 shares by trust.

Also, CBL & Associates reported the acquisition of 208,675 shares from CBL Properties on Friday. It says CBL & Associates now has 16,555,808 shares.

Price given on all the transactions is $0. 

 

 

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