Mall REIT Washington Prime Group (WPG) finally filed for Ch.11 bankruptcy on June 13 in Texas after months of negotiations with the plan sponsor, SVPGlobal. Unsecured notes holders will get most of the new equity according
Bankrupt Washington Prime Equity Holders Are Overvaluing Their Potential Recoveries Under The RSA
Summary
- Mall REIT Washington Prime Group filed for Ch.11 bankruptcy on June 13.
- Common shareholders and preferred shareholders will split $40 million cash or 6.125% of the new equity.
- Unsecured noteholders are getting cash and right to participate in a rights offer, if they are accredited investors.
- They are expected to exit bankruptcy by the end of August or if there is an alternative plan, by early September.
- The RSA left open the possibility of an alternative plan, which would have to meet a number of cash recovery conditions.
I no longer write for Seeking Alpha. B.A. in Economics; M.S. in Finance. I usually wrote about distressed companies and companies in Ch.11 bankruptcy. I am now fully retired after spending decades in investments.
Analyst’s Disclosure:I/we have no positions in any stocks mentioned, but may initiate a long position in WPG NOTES over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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